Microsoft Might Still Buy BlackBerry

Microsoft  (NASDAQ: MSFT  ) may have just announced a $7.2 billion deal to acquire Nokia's (NYSE: NOK  ) handset business and license the Finnish company's patents, but that doesn't mean the tech behemoth has closed its enormous checkbook just yet.

According to a recent Bloomberg report, sources familiar with the Nokia deal say Microsoft might still be interested in acquiring BlackBerry (NASDAQ: BBRY  ) .

Of course, that'd be music to weary BlackBerry shareholders' ears, considering the stomach-churning roller coaster they've endured over the past few months:

BBRY Total Return Price Chart

BBRY Total Return Price data by YCharts.

Back in June, the stock tanked more than 27% following the company's dismal second-quarter earnings report, after which new-ish CEO Thorsten Heins responded at its annual shareholder meeting by begging for patience and effectively telling everyone they were measuring BlackBerry by the wrong metrics.

Then, by the middle of August, the stock had already started to recover when BlackBerry's board announced they were exploring "strategic alternatives" for the business, one of which most notably included putting the company up on the auction block for sale.

Lately, though, many investors have worried there simply might not be anyone interested in buying BlackBerry, especially as its BB10 operating system simply isn't gaining the traction it needs to compete with more popular consumer-centric offerings from the likes of Apple and Samsung.

Naturally, Microsoft's Nokia acquisition only served to amplify those concerns.

Here's why Micro-Berry could make sense
Late Wednesday, however, a Wall Street Journal report stated BlackBerry has already "held preliminary talks with parties interested in buying part or all of the company," and is now "aiming to complete a fast auction process that could be wrapped up by November."

If you think that sounds like a tall order, you'd probably be right.

After all, BlackBerry's market capitalization currently sits at just over $5.6 billion, so there aren't many companies capable or willing to pull off a deal of this size, especially with no apparent signs of a near-term recovery for the struggling smartphone maker.

But that's still less than Mr. Softy paid for Nokia, and regardless of whether BlackBerry's devices and software are picking up steam in the ultra-competitive consumer segment, remember the company largely still exists because of its uncanny ability to cater to the needs of businesses, which require a solid enterprise security software solution.

And while Nokia's Lumia smartphones will undoubtedly do wonders to set up Microsoft for a renewed push in the worldwide mobile space, where they've largely lagged behind the more popular smartphones from Apple and Samsung, BlackBerry could serve as a nice supplementary prize to help Microsoft penetrate the also-lucrative enterprise segment.

By snagging BlackBerry by its new November deadline, then, Microsoft will have taken under its wing the two highest-profile smartphone has-beens available in the mobile market today. If Microsoft could then manage to successfully integrate the two into one larger complementary business, there's no reason it couldn't ultimately represent a formidable threat to the today's mobile market leaders down the road.

All in all, nothing would surprise me at this point, especially considering the tech world has already been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!


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  • Report this Comment On September 05, 2013, at 11:24 AM, cbglobal wrote:

    This would make sense. MSFT has $75 Billion in cash and annual profits of $30 Billion. The $7.2 for Nokia is pocket change.

    Blackberry and Nokia are really different markets; one enterprise and government; the other consumer. The small overlap in consumer in places like India and other emerging markets will not matter.

    Both would give MSFT less then 10% market share, so there should be no antitrust issues considering how large Apple and Samsung are.

  • Report this Comment On September 05, 2013, at 11:51 AM, Herculoid wrote:

    Why in the world would Microsoft want to buy another smartphone OS that is entirely incompatible with Windows Phone? I can see that MS could possibly be interested in some of the software and patents, but the entire company? That's just dreaming in Technicolor...

  • Report this Comment On September 05, 2013, at 12:40 PM, tuan2le wrote:

    Now we've learned the idea of buying Nokia started in 2011. If there was another big acquisition before Ballmer's final day, I suspect it would be some unfinished attempt but still making sense. Yahoo is one for example to fill out their consumer service side.

  • Report this Comment On September 05, 2013, at 3:54 PM, kellix wrote:

    If any FOOL, doesn't get why this is not a great idea, doesn't have a clue about mobile phones and enterprise. Microsoft, just bought Nokia, great phones to the masses. Right now, Blackberry is dying on the vine, they have the BEST MDM software there is. They invented the business. So if Microsoft buys Blackberry, they can dump the bad blackberry phones but keep the patents and the mdm software, which they can couple it with their own software called Exchange and their phones. There are about 30 companies called, AirWatch, Good, Mobile iron, are all waiting for blackberry to die so they can get buisnesses to use their software which is garbage compared to blackberries, remember they invented it. So why would Microsoft want to buy that, considering, most govts, like ours all use blackberry and what CIO, would love to be able to dump another vendor like AirWatch and the rest, if Microsoft came in and said we got it and made it just as easy as blackberries. They would crush all these other companies like cockroaches. That's why. Makes sense huh? Also selling their phones at the same time. All these companies have to connect to Exchange anyway. If Microsoft gets blackberry they have hands down the best MDM software out there.

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