BlackBerry Patents Could Power Future iPhones, Android Or Windows Devices
According to Bloomberg, if a firm acquired all of BlackBerry, it would be stuck with an "essentially worthless" phone unit that could cost $800 million to shut down.
With a current market cap of $5.26 billion, the total cost of acquiring BlackBerry could be close to $6 billion.
To avoid these added expenses, interested buyers may look to the firm's extensive patent portfolio. Others may be interested in BlackBerry's iconic software.
Though it might seem odd that a smartphone manufacturer would want the software without the hardware, the buyer is expected to already have its own smartphones in production. If it wants to take a chance on BlackBerry and invest in the brand, as well as its mobile OS, the buyer could release a true BlackBerry device.
Otherwise, the BlackBerry name may slowly disappear from the marketplace. While it could be years before that occurs, it is hard to imagine that BlackBerry will continue to produce new phones if it sells off all of its patents.
There is still the chance that BlackBerry will go private and restructure the business. Not everyone is convinced that this will happen. But if it did, BlackBerry could find some interesting investors to help keep the firm afloat.
If that plan fails, however, BlackBerry executives may have to settle for a breakup.
In that event, the firm's patents could wind up at Google (NASDAQ: GOOG), Microsoft (NASDAQ: MSFT), Samsung (OTC: SSNLF) or any number of tech giants. Even Apple (NASDAQ: AAPL) may be interested in BlackBerry's patents.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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