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Any Juice Left To Squeeze?: Should Lenovo Buy Blackberry?

Stocks in this article: AAPLBBRYGOOGMSFT

However, the deal could face significant blowback from BlackBerry's home country and one of its largest customers: Canada and the US. Canada may not have the political will to allow a foreigner to buy BlackBerry, even though it might be in the best interest for the company and for shareholders. It would seem like one of their biggest corporate success stories was waiving the white flag of surrender. 

And the US government is one of BlackBerry's biggest customers – no doubt in part because of the firm's corporate culture and enhanced security. However it stands to reason that Uncle Sam might not be so warm and fuzzy equipping its spies with Chinese-controlled phones. It's easy to see how government interests might come before the company's.  

Higher bids possible

A final hope is that Lenovo’s interest in buying BlackBerry would spur other bids. Lenovo has lots of cash and could raise funds to take over and right the BlackBerry business. Lenovo has a good history with the consumer market, through the revival of the ThinkPad laptop. But is the popularity of BBM enough to boost BlackBerry’s market share in Asia, the Middle East, and finally North America, with or without a buyout?

 

Disclosure: Author has a long position in BlackBerry

(Written by Chris Lau, a Kapitall Contributor. All data sourced from Zacks Investment Research.)

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