To call the reaction to BlackBerry Ltd.’s (NASDAQ: BBRY) admission that it exploring strategic alternatives “muted” is probably to understate the case. Investors can’t bring themselves to believe that anyone really thinks a buyer will surface.
The one-time behemoth in the smartphone market, BlackBerry has watched its market share collapse from around 50% in 2009 to less than 3% today. The touchscreen phones from Apple Inc. (NASDAQ: AAPL) and other makers that use the free Android operating system from Google Inc. (NASDAQ: GOOG) absolutely crushed BlackBerry’s hold.
We have noted our own skepticism about BlackBerry going private. In the first place, shareholders face a haircut of 50% or more, and today’s market cap of around $5 billion isn’t likely to improve much. In the second place, what sort of alliance or joint venture could BlackBerry make?
BlackBerry needs a buyer to survive and our candidate is Jeff Bezos, CEO of Amazon.com Inc. (NASDAQ: AMZN). Bezos’ acquisition of the Washington Post newspaper from The Washington Post Co. (NYSE: WPO) has crowned him as a perfect white knight for BlackBerry: find a failing company in a non-growth business, buy it cheap, and see what happens when someone with a vision takes over.
According to Forbes, as of March Bezos’ net worth was $25.2 billion, so he can certainly afford it. He didn’t pay a lot for the Post and BlackBerry has more than $3 billion in cash to help soften the blow.
What’s more, BlackBerry gives Bezos and Amazon an entry into the smartphone market, even as rumors surfaced last week that a game controller was on its way in time for holiday shopping. Stranger things have happened.
Shares are up 5.2% at $10.26 in a 52-week range of $6.22 to $18.32.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
