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Home Enterprise

Samsung’s Alleged Bid for BlackBerry: A Play for Patents and Security Tech

by
January 15, 2015
in Enterprise, General, Service news, Telecom
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Recent reports have surfaced that Samsung, the electronics giant, has made a high-value bid to take over BlackBerry, the once-dominant smartphone manufacturer. The proposed offer appears to hover around the $7.5 billion mark. This strategic move, if successful, could give Samsung access to BlackBerry’s vast reserves of patents. Further reports suggest Samsung’s proposal prices per BlackBerry share somewhere between $13.35 and $15.49. Such figures when compared to BlackBerry’s present trading price, represents a premium range of 38 percent to 60 percent.

Fuelled by these rumours, BlackBerry’s stock saw an impressive surge. Business Insider recorded a whopping 16% jump in BlackBerry shares on the news of this potential acquisition.

Reputable sources have reported that key executives from both companies have already conducted preliminary meetings on the matter. Both corporate circles and tech enthusiasts are keenly awaiting an official announcement. Rest assured, we’ll update you as soon as additional details surface.

So, why is Samsung interested in BlackBerry? An insightful report by Business Insider cites BlackBerry’s early entry into the smartphone market and its extensive patent possessions, as attractive hooks for Samsung.

How valuable are these patents? They may not be as priceless as you might think. The patent wars concerning mobile devices have been slowly simmering down. BlackBerry, as part of the Rockstar consortium along with Apple and Microsoft, previously purchased several patents from telecom provider Nortel. However, as of last month, Rockstar has started to sell off these patents. At the same time, major smartphone manufacturers — Samsung, Apple, Google, and Microsoft included — have largely settled patent disputes and cross-licensed many of their respective patents.

While BlackBerry devices have largely fallen out of favor with the general consumer, they are still considered the gold standard for security within industries such as government and military. This is due to the secure nature of BlackBerry handsets and their associated BlackBerry Enterprise Servers (BES).

In the wake of high-profile company hacks like Sony’s and the increased debates around cybersecurity, digit security has become a priority. This has led to fundamental shifts in security strategies among major tech companies.

Roll the clock back to 2013, Samsung introduced Knox, a set of technologies designed to enhance security and management of Android phones. But the project evidently encountered hiccups. As of 2014, Samsung was compelled to deny allegations of abandoning Knox amid slow rollout criticisms.

Fast forward to November 2014, Samsung and BlackBerry announced their collaborative efforts to allow BES 12 to manage Samsung Knox devices. Acquiring BlackBerry might give Samsung full access to BlackBerry’s technology and patents, a move that could potentially elevate Knox’s security game.

However, gaining control over BlackBerry’s technology isn’t Samsung’s only motivation. Acquiring BlackBerry could offer Samsung direct access to their professional customer base. Existing BlackBerry customers could potentially make Knox a popular brand, especially as enterprise security is rapidly becoming a crucial concern. This could nicely balance Samsung’s challenges in the consumer market from Apple, Xiaomi, and others.

While acquiring patents may be part of Samsung’s strategy, it seems doubtful it’s the sole reason for their reported interest in BlackBerry.

This article was updated in 2025 to reflect modern realities.

[UPDATED_TB_2025]

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