Samsung Wants to Buy BlackBerry for $7.5 Billion; Shares Soar
Samsung wants to buy BlackBerry.
According to according to “a person familiar with the matter” and documents seen by Reuters, Samsung is willing to pay $7.5 billion for BlackBerry. It mostly wants the Canadian company’s treasure trove of patents, the source suggests.
South Korea’s Samsung proposed an initial price range of $13.35 to $15.49 per share, which represents a premium of 38 percent to 60 percent over BlackBerry’s current trading price, the source said. Executives from the two companies, which are working with advisers, met last week to discuss a potential transaction, the source said, asking not to be identified because the conversations are private.
BlackBerry’s stock skyrocketed nearly 30% on the news.
Even if BlackBerry accepted Samsung’s offer, the transaction would undergo heavy scrutiny from the Canadian government, however. Ottawa has stated previously it would be hesitant to allow a foreign company to acquire BlackBerry wholly.
Lenovo has expressed interest in buying BlackBerry multiple times.
UPDATE: BlackBerry has denied talks of a Samsung takeover. “BlackBerry is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry,” the company wrote in a statement. “BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry.”
“BlackBerry’s policy is not to comment on rumors or speculation, and accordingly it does not intend to comment further,” the company added.
