We have heard a number of companies are interested in buying BlackBerry over the last few weeks, including Mike Lazaridis, Lenovo, John Sculley and more.
The news of all the potential bids for BlackBerry came after the company announced a $4.7 billion buyout deal with Fairfax Financial, and now according to a recent report, Facebook is interested in BlackBerry.
According to the report, Facebook and BlackBerry had a meeting last week to discuss a potential deal. Companies have until the 4th of November to complete the due diligence in the Fairfax and BlackBerry deal.
Facebook’s Previous Forays into Smartphones
Facebook has tried with smartphones previously with Facebook Home and Facebook branded devices with the likes of HTC, although these did not really take off. Facebook Home, which was essentially a user interface layer for Android, aimed to integrate Facebook services deeply into the smartphone experience. However, it failed to gain significant traction among users. Similarly, the HTC First, also known as the “Facebook Phone,” did not perform well in the market, leading to its quick demise.
Despite these setbacks, Facebook’s interest in BlackBerry could signal a renewed strategy. BlackBerry’s established presence in the smartphone market, coupled with its strong focus on security and enterprise solutions, might provide Facebook with a more solid foundation to build upon.
BlackBerry’s Financial and Patent Portfolio
BlackBerry has around $2.6 billion in cash and has no debts, which makes it an attractive acquisition target. The company also has a patent portfolio estimated to be worth between $1 and $3 billion. These patents cover a wide range of technologies, including secure communications, mobile operating systems, and enterprise solutions. The patents could be of significant interest to Facebook, especially as the company continues to expand its mobile and enterprise offerings.
Facebook has been concentrating heavily on mobile, and their mobile traffic has increased significantly over the last 12 months. In fact, mobile advertising revenue now accounts for a substantial portion of Facebook’s total revenue. This shift towards mobile has been driven by the increasing number of users accessing Facebook through their smartphones and tablets.
Owning their own smartphone maker could be a strategic move for Facebook. It would allow the company to have greater control over the hardware and software integration, potentially leading to a more seamless user experience. Additionally, it could provide Facebook with new revenue streams through the sale of devices and related services.
Moreover, BlackBerry’s strong reputation for security could be leveraged by Facebook to enhance its own security features. This could be particularly appealing to enterprise customers who prioritize data protection and secure communications.
In conclusion, while Facebook’s previous attempts at entering the smartphone market have not been successful, acquiring BlackBerry could provide the company with a unique opportunity to strengthen its mobile strategy. With BlackBerry’s financial stability, valuable patent portfolio, and strong focus on security, Facebook could potentially create a compelling offering for both consumers and enterprise customers.
Source Gizmodo
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