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Facebook Shouldn’t Acquire BlackBerry

The Wall Street Journal is reporting that BlackBerry (NASDAQ: BBRY  ) is pitching itself to Facebook (NASDAQ: FB  ) . Bad idea, Fool contributor Tim Beyers says in the following video.

Why? Price. While Facebook could benefit from integrating BlackBerry's popular (and increasingly pervasive) Messenger technology, the Canadian handset maker is probably unwilling to part with a sliver of its business when there's an offer for the entire company already on the table.

There's also no telling how much of an advantage Facebook would gain in acquiring BBM. All of the major smartphone platforms now have at least some messaging capability, while platform-neutral WhatsApp serves some 350 million monthly active users, no doubt many of them already active on Facebook, Tim says.

Should investors sell if a deal gets done? What are the chances one will? Tim addresses these questions and more in the video. Please watch now, and then leave a comment to let us know what you think.

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Read/Post Comments (5) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 31, 2013, at 7:26 PM, cbglobal wrote:

    Safe to say Zuckerberg not only does not care what Motley Fools thinks, he does not care they even exist.

    Their initials say it all.

  • Report this Comment On October 31, 2013, at 8:15 PM, francinema wrote:

    I happen to think that the video segment - while cogent and intriguing - was offbase.

    Blackberry DOES have quite a few assets apart from BBM, ... and Facebook really should borrow a page or 2 from Google, this year's (and several others in the last 5 or 10, for sure) smartest tech company by all evidence.

    Specifically, while "sticking to what you know" may be good advice for mortals, companies have to ask whether they're betting billions on what may turn out to be a lame horse. It pains me, of course, to think that whether teens do or do not waste x number of hours on Facebook ... is something that investors should concern themselves with, it probably is THE CASE.

    And FB should have a strategy other than trying to get those teens re-addicted!

    MAYBE, the teens are simply destined to "jump ship," because Zuck is probably a teen's idea of "cool" for about 0.01% of them.... Just as teens say no to almost anything a parent says, they are just looking for an excuse to dump (and dump on) FB.

    WOULDN'T IT BE NICE if FB had a 2nd string or a 3rd, ... like PHONES?!

    Google has Android to backstop search. Also YouTube and maybe something for ze eyes! This is a case where Google "gets it" and FB would do well to engage in a little "us, too!"

    Blackberry has fallen so far that somebody who buys that sorry company CAN integrate one or 2 prize (to them) assets and probably sell off the rest, making this a CHEAP purchase, not - as Tim would have it - a DEAR one.

  • Report this Comment On November 01, 2013, at 12:10 AM, popeyemarty wrote:

    There are four reasons to buy blackberry:

    1) the BBM, as noted,

    2) the patents,

    3) the price is low and money is cheap,

    4) they don't have to sell the phone part of the business it is popular with many people outside the USA. Also, no analyst thought anybody wanted to buy Clearwire or Sprint either.

  • Report this Comment On November 01, 2013, at 3:04 AM, jhf678 wrote:

    That is the reason why small inferior guy always stay small. When Google acquired Motorola people said the same thing. Now they are over $1,000/share.

  • Report this Comment On November 03, 2013, at 3:25 PM, johnnycanuck wrote:

    To popeyemarty's comments I would also add:

    5) enterprise services via BES10,

    6) a true mobile-and-device-ready independent OS in QNX,

    allowing Facebook to expand into businesses that it currently does not operate in.

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