Both Blackberry and Samsung have dismissed a report published on newswire network Reuters which reported that the South Korean electronic company wants to acquire the struggling Canadian mobile device maker for $7.5 billion.
Though the two tech firms have refuted to the above claims, analysts cited that the acquisition of Blackberry by Samsung could make sense by reviving former’s growth momentum in its smartphone business.
This article will list down why this deal could be important and here’s to how:
- Blackberry has intellectual property that could make it attractive to Samsung which is in need of revitalizing its growth momentum
- Blackberry still has a strong presence in the business market that Samsung is looking for
- Business clients are increasingly important for the Korean company’s future. It’s desire to get more corporate clients is greater these days because intense competition in the consumer mobile market has reduced its fat profit margins
- Samsung’s KNOX software has not been embraced by business customers. Contrary, the software behind the security for BlackBerry devices is well regarded and popular
- Samsung’s KNOX is based on Google’s Android operating system which the South Korean company is trying to minimize depending on
- Just like Apple and Google, Samsung wants full control over all aspects of its products, not just their hardware but their software as well hence buying Blackberry will make sense
- Acquiring BlackBerry will give Samsung more benefits of working independently with Google
- Blackberry’s stock of other patents and intellectual property could also be attractive to Samsungh
Analyst at DOngbu Securities Yoo Eui-hyung said, “It is likely that KNOX, Samsung’s platform for business clients, will have a synergy effect”.