BlackBerry Shares Jump After Lenovo CEO Mentions Possible Deal
By Hugo Miller - Mar 11, 2013 9:01 AM PT
BlackBerry shares jumped the most in more than a month after Lenovo Group Ltd. (992)’s chief executive officer was quoted in a French financial newspaper as saying his company may eventually consider buying the smartphone maker.
Lenovo’s Yang Yuanqing told the Les Echos paper that a deal with Waterloo, Ontario-based BlackBerry “could possibly make sense, but first I need to analyze the market and understand what exactly the importance of this company is.”
The remarks echoed comments made in January by Lenovo Chief Financial Officer Wong Wai Ming, who said the company was “looking at all opportunities,” including BlackBerry. The Canadian smartphone maker began a review of its strategic options last year after losing market share to smartphones such as Apple Inc. (AAPL)’s iPhone and Samsung Electronics Co.’s Galaxy, raising speculation that it could be a takeover target.
Blackberry Z10, in my view can be separated into four level of service.
The consumer grade, I call, Level 0 service requires no encryption, no scrambling. It is just like any other phone. Just plug a SIM card in from any other phone and it works.
Level 1, 2 and 3 have scrambling and encryption. These are not official classification but just from Beaver Official.
Level 1 - BIS service - eg BB5, 6, 7 service. Should be offering to BB10 too.
Level 2 - BES service with Balance - eg German government application.
Level 3 - pure BES service with no consumer side, ie no Balance - Super secure application.
To avoid any security issue. Lenovo can just license the consumer grade device and OS. Blackberry keeps Level 1, 2 and 3 to itself.
Lenovo can cover the millions and millions consumer market for BB10 phones and tablets.
Any questions, please ask. Hope this is clear.
CDN and US governments would let a Hong Kong (CHINA) listed company be in charge of the phone network used by the military and government? NOT gonna happen.
And besides, Lenovo's market cap is about 9b, right? BBRY's is about 7.5bil (today). A partnership or licensing could work, but they're not big enough to do a buyout.
Still, it is a public traded company.. even if the fed wants to interfere, lots of lawsuit will follow..bbry doesnt belong to the government it belongs to its owner.. if you own a company, and the fed tells u cant sell it. I will give them the finger..
Sentiment: Strong Buy
Exactly, no take over, only strategic partnership in Level 0.
Lenovo has manufacturing capacity and China market foothold, that is what Blackberry wants.
Mobile and tablet is what Lenovo wants to replace the dwindling PC demand.
A perfect partnership.
driving, there is no buyout.
There will likely be a strategic partnership in civilian version of BB10 phones and tablets.
Lenovo can open the China market for Blackberry in a very BIG way.