Close

Who Will Buy BlackBerry (BBRY)? Here Are Some Potential Suitors...

August 13, 2013 7:00 AM EDT
BlackBerry (Nasdaq: BBRY) shares rose Monday on news that its management team would now explore strategic alternatives, which might include a sale. But, who would buy the ailing device maker?

The Globe & Mail thinks Fairfax Financial Holdings Ltd. might take a hard look at BlackBerry. Fairfax currently holds 10 percent of BlackBerry, making it a very viable candidate.

Conversely, the NY Post cites sources in saying that BlackBerry is looking for more of a Google-like investor rather than a private equity firm. One potential tech suitor might be Amazon.com (Nasdaq: AMZN), which has been rumored to be developing a smartphone in the past.

Another tech partner might be Microsoft (Nasdaq: MSFT), though it might be expected that Microsoft would continue to focus on its partnership with Nokia (NYSE: NOK).

Should Michael Dell's bid to take Dell, Inc. (Nasdaq: DELL) private fail, the PC giant might also do well with a mobile operator. It's one area of the computing/consumer electronics market that Dell has failed to make a dent. Putting the Dell name on devices and using its vast marketing channels might prove to be a better catalyst for selling mobile devices versus what BlackBerry has attempted in the last few years.

In the past, it's been speculated the Samsung might also eye a partnership, though it has been working on development and release of its own operating system in Tizen over the last few years. Samsung also isn't lacking in the high-quality handset department either, as evidenced by its Galaxy series of devices.

Then again, buyers might sell off the hardware unit and focus solely on BlackBerry's latest operating system, BB10. With mobile devices, it has all been about the ecosystem tied to the operating system, something Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) have been successful in developing for iOS and Android, respectively. Microsoft and BlackBerry were a little late to the next-generation smartphone gain and playing catchup is never an easy task.

Shares of BlackBerry are up in early trading Tuesday after closing 10.5 percent higher Monday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Insiders' Blog, Mergers and Acquisitions, Private Equity

Related Entities

Michael Dell