BlackBerry Ltd (NASDAQ: BBRY)
Apple Inc. (NASDAQ: AAPL)
BlackBerry, the Canadian cell phone manufacturer has been struggling for quite some time now. Since Apple’s iPhone and Google’s Android driven phones hit the market, BlackBerry simply seemed to fall out of popularity. These days, the biggest movement we’ve seen from BBRY in the stock market has been the result of buyout talks. For example, when rumors spread in January that Samsung would be acquiring BlackBerry, BBRY rose by more than 30% in a single day! Now, there’s rumor of another acquisition to come. Rumors are spreading that Apple is interested in a BlackBerry buyout. However, are the rumors baseless? Let’s take a look and see…
The Root Of The Rumors
No one seems to know where the rumors started or can confirm why they started. Apple and BlackBerry haven’t confirmed or denied the acquisition plans either. So, what is the root of these rumors? I think they have quite a bit to do with Apple’s recent litigation revolving around patents infringement claims with regard to the iPhone and iPad. Essentially, if this buyout were in progress, I could only imagine that Apple would be doing this to protect their interests in the mobile devices market. However, I’m not quite sure the rumors are true. For me, a buyout really doesn’t make much sense.
Why I Don’t Think Apple Will Be Acquiring BlackBerry
There are a couple of reasons that I don’t think a BBRY acquisition by apple is going to happen…
- Apple Most Likely Did Not Infringe On Patents – The only way this buyout would really make sense is if Apple infringed on patents and is working to protect its best interest in the mobile devices market. However, I don’t believe that Apple has done anything wrong. Many of the patent infringement claims were from patent trolls that don’t have a single product to sell; and in my opinion, all of the claims are unfounded. So, in reality, Apple doesn’t have much of a reason to buy BlackBerry.
- I Don’t Think BlackBerry Would Go For It – BlackBerry on the other hand, probably wouldn’t go for the acquisition in the first place. There’s no doubt in my mind that the company is struggling; however, I don’t think they’re willing to let go just yet. The reality is that BlackBerry is making pretty incredible moves; changing it’s core focus from smartphones to a key involvement in the Internet of Things. Software development and sales, as well as other areas of the world of connectivity are the future for BBRY; and it’s most likely going to be a lucrative one. So, if Apple does takeover BlackBerry, it’s most likely not going to be a friendly acquisition as BBRY is likely to fight an acquisition tooth and nail.
What Do You Think?
Do you think that there’s any truth in the acquisition rumor? Why or why not? Let us know in the comments below!