New rumors surfaced that Lenovo is looking to buy BlackBerry. This was not the first time that the Chinese company is interested in the Canadian firm. But now the smartphone producer it seems a little bit more attractive than an year ago. Now BlackBerry is trying to revive its handset division and has some positive results. The new Passport smartphone sold 200 thousands units for a short time and this give some breathing time for the Canadians. Now according to a new report, after this moderate success Lenovo is preparing a new offer for acquisition.
The report suggests that the Chinese company will offer $15 per share which will make BlackBerry’s market capitalization for about $7.8 billion. In the end of the trading in Tuesday the Canadian firm’s shares hit $10.15 per share which means almost 50% premium to its current market price. The rumors are pointing for even aggressive bid from Lenovo for $18 per share. That may look unrealistic, but BlackBerry’s shares are very dynamic in the past two years. In January 2013 they almost hit $18 mark, and in the autumn the same year were down to almost $5.88 per share.
Lenovo looked to acquire BlackBerry back in the 2013, but the management was not satisfied by the value of the company and its diminishing market share in the smartphone business. The speculations reached their peak around the autumn of 2013 when the Canadian company started to seek some strategic options, which included possible sell of the whole group, or partial assets (in other words the smartphone business). The same time the share price was hit the bottom, but now it is surge again. BlackBerry have more value not with its smartphones, but with its secure servers and messaging services for corporate clients. There were some rumors that the company may be split in half, but the CEO John Chen stressed that the hand set business is still the core activity.
There may be a strong plausibility that Lenovo is testing the ground for eventual merging talks, but there is no further information. And at least for now the speculated price is looking a little bit to spicy, unless BlackBerry prove that could hold more value.
Image Credit: Maurizio Pesce