Samsung To Acquire Blackberry For $7.5 Billion

If some sources are to be believed, Samsung Electronics has recently offered to buy Blackberry Ltd for a whopping $7.5 billion. The South Korean company has plans of overtaking Apple in the corporate world through this takeover. Samsung is reportedly also seeking Blackberry’s valuable patents through this deal.

According to the rumors doing round the market, Samsung has offered an initial price range of $13.35 to $15.49 per share. This price range represents a premium of 38% to 60% over Blackberry’s trading price right now.

Though there are various sources confirming the takeover talk news, both the companies currently seem to be in a denying mood.

According to a statement released by Waterloo, Ontario based Blackberry, "it has not engaged in discussions with Samsung with respect to any possible offer to purchase Blackberry."

Jini Park, Samsung Electronics, Spokeswoman also deemed the takeover reports as “groundless” and added that the South Korean company has absolutely no plans to buy Blackberry.

According to a report in Globe and Mail, a Canadian newspaper, Blackberry has rejected a lot of takeover offers in the past few months as the company’s investors and board believe that its restructuring strategy will deliver greater shareholder value than the current acquisition offers made to the company.

The report also mentions that the Blackberry board thinks that the current acquisition offers being made to the company are far below its potential asset value in the next few years.

Blackberry, the company that pioneered smartphones, is currently trying its level best to regain its market share that it lost to Apple Inc, Samsung and Google Inc. The Canadian company currently holds just a small fraction of the US Smartphone market. It had nearly half the US Smartphone market in the year 2009. Blackberry has even started selling mobile security softwares for its rivals’ tablet and smartphones in order to counter the fading popularity of its own Smartphones. The company now seems to be getting right back on track under the strong leadership of John Chen, its Chief Executive.

The Samsung-Blackberry deal will help the South Korean Company make greater inroads in the corporate world and establish itself as the number one manufacturer of Smartphones in the whole wide world.

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