BlackBerry Stock Bounces, Drops Amid Samsung Buy Rumors
Yesterday, stock for BlackBerry saw a pretty huge bounce – and then a pretty huge drop – as rumors circulated that Samsung was interested in a reported $7.5 billion acquisition.
At around 4 p.m. Eastern yesterday, BlackBerry’s stock jumped up by over 29 percent, Business Insider reports, as talk of the acquisition swirled. However, when BlackBerry debunked the rumors with a press release, the stock tumbled back down by another 17 percent, says Bloomberg.
And, of course, here’s what BlackBerry had to say on the matter:
“BlackBerry Limited is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry. BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. BlackBerry’s policy is not to comment on rumors or speculation, and accordingly it does not intend to comment further.”
It’s a shame that the most interest BlackBerry can muster is that it’ll be bought by a much larger company. I have to also wonder what Samsung would stand to gain by buying BlackBerry anyway – it’s having enough trouble with its mobile division. Why would it want to add BlackBerry’s problems onto its own? BlackBerry was once the king of smartphones, but fell largely into irrelevance with the arrival of Apple’s iPhone, and the subsequent explosion of Android handsets – many of which having come from Samsung itself.
Even still, it’s entirely possible that there’s more truth to this rumor than BlackBerry is letting on. Maybe there was a phone conversation, or simply an offer on the part of Samsung. Business Insider links back to a report from the Globe and Mail, which says that BlackBerry’s execs believe that its potential value is higher than the offers it’s been receiving. It will be interesting to see how – or if – the company can prove that to be true over the next few months.