Rumor: Samsung In Talks To Buy Out BlackBerry

The mobile landscape might be changing again as word of a potential buyout of BlackBerry from Samsung has BlackBerry's stock soaring by almost 30 percent.

Samsung proposed a buyout worth $7.5 billion to the Canadian-based company. According to Reuters, that would be about $13.49 - $15.49 for each share. That would value Samsung's asking price to 35 to 60 percent over BlackBerry's actual value. Apparently, the reason for Samsung's proposal is to gain access to BlackBerry's patent portfolio.

One guess for the buyout could be for BlackBerry's security software. Last August, BlackBerry's Secure Work Space solution was given the Security Technical Implementation Guide approval by the Defense Integration Systems Agency (DISA). Secure Work Space is managed by the BlackBerry 10 platform, which the company boasted at the time was the only mobile operating system that has the Full Operating Capability certification, meaning that it can run on networks owned by the United States Department of Defense.

However, Samsung has its own security accolades. Last October, its Knox software was approved for classified use by the U.S. government and was added onto the Commercial for Classified Program Component List. That list is used by the NSA and other agencies that are looking for an additional and advanced level of security.

In May 2014, Knox was also approved by the DISA for use on sensitive, but unclassified, material on the networks of the Department of Defense. Google also partnered with Samsung last July to bring Knox to Android 5.0. Additionally, Samsung smartphones with Knox were also approved for official use by the UK government.

The buyout might also be beneficial for BlackBerry in order to get some financial support. The three-year layoffs, which saw the company cut by 60 percent just ended last year, but BlackBerry is already bolstering up its ranks in some areas, according to a memo.

Samsung has yet to comment on the talks, but BlackBerry issued a statement saying that the company "has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry." The press release did not provide any further details.

If it does come to fruition, Samsung could be a major player in software security. With the combined efforts of its Knox software as well as the BlackBerry 10 platform, Samsung would enjoy a bolstered reputation from its security IP being used on U.S. defense networks as well as being in the smartphone of U.K. government officials.

Follow Rexly Peñaflorida II @Heirdeux. Follow us @tomshardware, on Facebook and on Google+.

TOPICS
  • saint19
    This was on "the air" since last year.

    RIM lost a big, very big part of the market with Samsung and mostly with all new smart generations devices.
    Reply
  • Shin-san
    Samsung with Blackberry's patents is scary
    Reply
  • vaughn2k
    It will not happen. Unless it is a US based, UK based, German based or another Canadian based company. Samsung is vulnerable to cyber attacks with its neighbor, and US Department of Defense do not want that.
    Reply
  • DuncDog
    Side Note from a passerby: The hover text on the link to this article says 7.5 million dollars.
    Reply
  • Au_equus
    BBRY dropped 14.8% (after going up almost 30%) in pre-market trading due to denials on both sides. Its hard not to see benefits Samsung would get from buying up blackberry.
    Reply
  • davide445
    As BlackBerry owner will not like this new arrangement, obviously beneficial for Samsung but killing BB commitment for alternative and business oriented ecosystem.
    Considering USA perspective also agree with vaughn2k: national security sensitive acquisitions such as this one will probably not be allowed to go to a strong commercial competitor in high tech and traditionally not an aligned friend of US foreign policy.
    Reply
  • NightLight
    sad to see so much money to obtain patents, instead of developing new tech.
    Reply
  • belardo
    @David445: HUH?! The USGovt doesn't have a direct say on what is sold or bought in other countries. Samsung is in South Korea, not North Korea, you understand the difference? We have thousands of US Soldiers stationed in S.Korea.

    Pretty much ALL mobile devices are MADE IN CHINA or Korea - including BB. Its possible the Chinese (govt) to hard-wire code into technology.

    As stated, it looks like its a rumor and Many people (including myself) wouldn't see a reason why Samsung would bother with BB.
    Reply
  • icemunk
    I'm so glad I bought BBRY stock earlier this year for $9 :) Sold!
    Reply
  • Urzu1000
    Hi, on the article page, is says $7.5 million, instead of billion. I actually clicked the article because I thought "WOW, Blackberry is only worth 7.5M? How the mighty have fallen!"
    Reply