Best daily deals

Affiliate links on Android Authority may earn us a commission. Learn more.

Report: Samsung is actively pursuing BlackBerry despite rebuttals from both sides

According to the Financial Post, Samsung is still trying to buy BlackBerry, even though both sides have categorically denied the rumor.
By
January 22, 2015

According to the Financial Post, Samsung is still trying to take over or buy a significant stake in BlackBerry, even though both sides have categorically denied the rumor.

The Financial Post has managed to get its hands on a document which outlines the business case for a take over and even suggests a possible structure for such a purchase. The document is purported to come from a New York-based independent investment bank, Evercore Partners, and was prepared on Samsung’s request.

Although the document was prepared during the last quarter of 2014, the Financial Post writes that a source familiar with the take over plans has said that Samsung is still interested in buying BlackBerry.

Last week, the news of a potential takeover from Samsung caused BlackBerry’s stock to rise temporarily, but it quickly returned to its nominal levels once the rumor was denied by both parties. “BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry,” the company said at the time. Likewise a Samsung spokeswoman told Reuters that “media reports of the acquisition are groundless.”

The main reason why Samsung would want to buy Blackberry is because of its back-end services and servers.

From the outside Samsung wanting to buy a failing smartphone maker, that has little in common with its own business model, seems like a dumb idea. Samsung already has Android, and Tizen. It doesn’t need a third mobile operating system to maintain. However there is more to BlackBerry than just its handset business. It is probable that the main reason why Samsung would want to buy Blackberry is because of its back-end services and servers. Many corporations, especially in North America, rely on BlackBerry for device management. Its BlackBerry Enterprise Service (BES) has about half the mobile device management market. BlackBerry has also added support for iOS and Android devices.

Back in November 2014, Blackberry and Samsung announced plans to work together to bring Samsung’s Knox security platform to BlackBerry’s business customers. The partnership is designed to bring together BlackBerry’s cross-platform BES12 enterprise mobility management software and Samsung’s KNOX security for Android devices. The partnership was, in part, a reaction to Apple teaming up with IBM to create a set of iPhone and iPad “enterprise apps” aimed at corporate and government customers.

However, $7.5 billion is a lot of money for Samsung to spend to buy its way into the enterprise. I am sure we haven’t heard the last of this story yet, so stay tuned to Android Authority for more coverage as it develops.