TORONTO – Blackberry is denying a report that Korean smartphone company Samsung Electronics has approached the Canadian company with a possible takeover bid.
“BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry,” the company said in a statement. “BlackBerry’s policy is not to comment on rumours or speculation, and accordingly it does not intend to comment further.”
Shares in BlackBerry surged late in trading on Wednesday after a Reuters report that said the troubled Waterloo-based smartphone maker is in talks to be acquired by bigger rival Samsung Electronics Co. Ltd.
According to Reuters, Samsung offered to pay as much as $7.5 billion for BlackBerry, once the leading player in wireless communications technologies that has seen its position slip against Samsung and Apple, maker of the iPhone.
Reuters, citing unnamed sources, said Samsung is interested primarily in Blackberry’s parent portfolio.
While any takeover remains speculative, the two companies could have a “very complimentary relationship” if a deal goes forward, technology analyst Carmi Levy said in an interview with Global News.
“Samsung is looking to not just business in the consumer market but in the enterprise or the corporate market. And that’s where Blackberry comes in,” he said.
“Samsung would not buy Blackberry in order to fold it in and make it disappear,” Levy said. “Blackberry still has some tremendous brand value in the corporate enterprise market and you destroy that brand at your peril. Really it would be more of a partnership approach.”
In November, BlackBerry announced a high-profile security partnership with Samsung that will pair BlackBerry’s security platform with the South Korean company’s security software for its Galaxy devices.
BlackBerry shares surged 30 per cent on the report.
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