Samsung denies BlackBerry deal
By Kim Yoo-chul
BlackBerry Z10
Samsung Electronics said Thursday that it has no plans to buy BlackBerry, denying a report that the tech giant approached the struggling smartphone-maker about acquisition.
"The report is totally groundless. Samsung has no interest in buying BlackBerry," Samsung spokeswoman Lim Yoon-jeong said.
The denial came a few hours after BlackBerry issued a statement also denying the report.
"BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry," it said.
Samsung reportedly offered to pay up to $15.49 per share, a premium of 60 percent over BlackBerrys current trading price.
It is not the first time that Samsung’s possible takeover of BlackBerry has been reported. In 2013, it was reported that Samsung would buy the Canadian firm which is listed on the Toronto Stock Exchange.
Analysts said chances are low that Samsung will spend billions of dollars for a single acquisition deal as the company has sought to buy small-sized companies that have patents in healthcare, chips and cloud computing.
"If the takeover offer is true or not, Samsung is stepping up its efforts to generate new value in the business-to-business (B2B) market, which is promising and has growth potential," said Yoo Eui-hyung at Dongbu Securities in a report.
Still, analysts say that there are some reasons that similar reports are popping up occasionally. They said what makes BlackBerry attractive for Samsung is that it has a portfolio of patents.
BlackBerry’s security device is also appealing as it is necessary for its inroads into the enterprise market.
"With Samsung seeking a bigger share of the B2B market, BlackBerry's portfolio of patents and its security devices are surely attractive. But it may be too big to bite," said Noh Geun-chang, head of research at HMC Investment.
Analysts also said that BlackBerry could be a vehicle for Samsung to reduce its reliance on Google’s Android operating sytem.
"Google Android is too powerful in the mobile ecosystem and Samsung understands that BlackBerry's portfolio will help it secure networking technology as potential assets," Noh said.
Focusing on B2B
Samsung Electronics is spending more to strengthen its device portfolio focusing on the B2B segment. Last year, it purchased five overseas companies, all of which are B2B firms.
Among them were cashing software developer Proximal Data, app service developer firm SELBY and Internet of Things (IoT) platform provider SmartThings.
Samsung’s move to expand its presence in the enterprise market comes as smartphone, TV and other consumer electronics goods are suffering falls in margins amid fiercer competition.
"Business-to-consumer (B2C) businesses are subject to volatile market conditions. Building a platform and enhancing new technology with strategic alliances are two priorities being pursued by top Samsung management," a senior Samsung executive said.
"With B2B expected to provide a huge business opportunity, we are putting greater focus on enhancing mobile security, which is key to entering the enterprise market," the executive said.
Samsung and BlackBerry may team up with new business projects, if needed, as the two companies have already been collaborating on various mobile-focused projects.
Key business units that handled the B2B business were moved to Samsung's smartphone business division led by co-CEO Shin Jong-kyun during last year's management shakeup.