Lenovo could become first non North American firm to enter Blackberry takeover race

by Andrew Roach on October 18, 2013

Since the company put themselves up for sale at the end of August, there has been a lot of speculation that a foreign company could be interested in taking over Blackberry and all their assets.

Despite much of the rumours petering away into nothing, the speculation over a possible bid from Lenovo has gathered pace over the last few months and the Chinese manufacturer could be about to make an offer for the smartphone company.

A report from the Wall Street Journal has suggested that the world’s biggest PC manufacturer is looking at the smartphone manufacturer’s financial records to assess whether a bid is possible.

At the moment, Fairfax Financial are the only company to officially bid for the company although American investment firm Cerberus Equity and the company’s founders are also mulling possible bids for the company. >

Lenovo have long been linked with a move for Blackberry with rumours tying the two companies together as early as the start of the year.

Executives at the Chinese firm mentioned a possible move for the company back in an interview in March with CEO Yang
Yuanquing mentioning that they would need to analyse the situation before they made any sort of approach for the company.

Since then, Blackberry’s fortunes have got worse and it now seems that the only way to save the company would be to have them taken over by a larger firm.

There has been no comment from either company about any negotiations between the two technology giants with the WSJ also mentioning that a non-disclosure agreement is in force as a potential move grows nearer.

Although Lenovo have all the resources at hand to make a competitive bid for Blackberry, any attempt to own the firm could be thwarted by the government review process.

All bids from overseas firms for major technology companies need to be reviewed by the government and a bid from a Chinese firm could spark national security fears over Blackberry’s secure network.

The network is often used for high level communications between governmental agencies throughout North America and is considered almost impenetrable and there will be some questions asked about whether it is safe for a foreign firm to have control of such a resource.

Even though fellow Chinese tech giants ZTE and Huawei have faced intense scrutiny over their links to the Chinese government, Lenovo have not been faced with the same problem and could certainly be classed as credible candidates to take over Blackberry.

Nothing is formal at this stage and Fairfax’s bid remains the only one to be confirmed however interest is starting to increase in Blackberry and it might not be too much longer before we see a bidding war take place to buyout the smartphone pioneers once and for all.

Did you like this post ? TheTelecomBlog.com publishes daily news, editorial, thoughts, and controversial opinion – you can subscribe by: RSS (click here), or email (click here).

Previous post:

Next post: