Could Any BlackBerry and Facebook Discussions Be Serious?

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By Jon C. Ogg Published
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BlackBerry Limited (NASDAQ: BBRY) is a merger story that just refuses to go away. Fairfax is the interested party at $9.00 per share, and there have been published rumors and written reports discussing the co-founders, private equity buyers, and Lenovo of China all having an interest in the struggling handset maker. But what about Facebook, Inc. (NASDAQ: FB) as a possible acquirer?

A report from Dow Jones signaled that Blackberry executives went out to meet with Facebook to see if there was interest. We have no way of knowing which parties or executives met, if any, and frankly we would be more than skeptical about publishing any names without absolute confirmation.

What we would be curious about is whether or not Facebook CEO Mark Zuckerberg would dare to be this brave. Whether running a smartphone off of Facebook Home counts as a Facebook phone is up to you to decide, but Mark Zuckerberg could be risking his relationships with hardware vendors if he saved his best stuff only to run off of BlackBerry.

Another issue is that Facebook addicts are already using other smartphones on Android and iOS platforms from Google Inc. (NASDAQ: GOOG) and Apple Inc. (NASDAQ: AAPL). They are not exactly the biggest BlackBerry customers. Apple and Google also have the lion’s share of the market share in smartphones. Even if a Windows phone may be getting more popular by some counts, Mark Zuckerberg has to know that he would be taking on the risk of losing out on being cool by owning BlackBerry.

We might be inclined to say that any buyout discussions ambitions that BlackBerry might have hopes for from Facebook could be one-sided wishful thinking. It could even be overly aggressive reporting of the matter.

Blackberry shares are up about 2.3% at $8.40 in mid-afternoon trading on Tuesday. Is that traders chasing a headline without considering any context?

Anything is possible in the world of M&A in technology, but this just doesn’t make much sense on the surface.

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

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