More Suitors Line Up to Woo BlackBerry

The Wall Street Journal is reporting that Lenovo has now potentially joined the fray in BlackBerry's (NASDAQ: BBRY  ) ongoing auction process. That would be in addition to the current $9 per-share offer from Fairfax Financial that's on the table, and previous reports also suggested that BlackBerry co-founder Mike Lazaridis was contemplating a bid. Yet, with at least three bids potentially on the table, BlackBerry is still trading at a significant discount to $9. Clearly there's some skepticism around each deal.

The Fairfax offer is highly contingent upon third-party financing, and lenders have their own due diligence process. Lazaridis is partially responsible for BlackBerry's current predicament, because his days as co-CEO did not treat the Canadian company well. Lenovo, meanwhile, could raise regulatory concerns as it is a Chinese company. Regulators may have national security concerns, as they did when they banned Chinese networking gear maker Huawei from the U.S.

In this segment of Tech Teardown, Erin Kennedy discusses BlackBerry's attempt to sell itself with Jamal Carnette and Evan Niu, CFA.

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  • Report this Comment On October 19, 2013, at 10:52 AM, derkman wrote:

    Let's talk about mistakes here, you MotleyTool guys made many mistakes in this video, you forgot to mention Ceberus as another suitor looking to buy all of BBRY, why? You also forgot to mention that BBRY is looking for partnerships, the media thinks they are for sale but the company is looking for other solutions too. You forgot that they will receive over $ 800 million in tax refunds and R&D going forward in the next 12 months. With all of these mistakes, should we ever expect you to say something intelligent for the rest of your lives? According to you Tools, we should place you on ignore forever because you clearly won't be able to change your ways and produce something worthwhile. A miss today is likely a miss forever.

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