Struggling smartphone manufacturer BlackBerry may be looking at breaking up the company assets, according to a new report by Bloomberg. This latest development comes in light of the Fairfax Financial buyout bid now looking a bit uncertain because of the falling stock price. Fairfax Financial had made an offer at $9 per share and the currently trading at $8 and is expected to fall further.While Fairfax performs its due diligence BlackBerry has been courting other suitors According to the source, the Canadian company approached SAP, Cisco, Intel and Samsung, among others. The companies in question, however, seem interested only in buying parts of BlackBerry, and are not looking to pick it up as a complete entity.
BlackBerry may be looking to break up its assets
An earlier report indicated that Google, SAP and Cisco were among the companies interested in buying BlackBerry, or parts of the company. The source seems to validate these claims and adds that SAP is looking at acquiring only the enterprise assets of the company, while Intel is keen only on picking up patents. None of the companies mentioned by the source have made any bids for the entire company as of now. For now, the most lucrative portion of BlackBerry is its enterprise business and the company's cash holdings, which were over $2 billion back in August. The company’s phone business, according to what RJF analyst Steven Li told the source, is not considered an asset at all due to its steadily declining sales figures.
Although this may upset BlackBerry loyalists but the best option on the table that will offer maximum value to the shareholders of the Canadian technology company is to break up BlackBerry and sell the assets individually as the sum of parts seem to unlock more value than the whole.
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