3 Reasons BlackBerry Will Never Be Acquired


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This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


First Benzinga detailed the 10 companies

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that could acquire BlackBerry Ltd (NASDQ: BBRY). Now it's time to hear the reasons why other analysts doubt that BlackBerry will ever be acquired.

1. Smartphone Buyouts Don't Have The Best History

Throughout history, investors can point to multiple mergers that worked in virtually every industry -- except smartphone production."Google bought Motorola and then Lenovo bought Motorola from Google," tech industry expert and analyst Jeff Kagan told Benzinga. "When Google made the buy, nobody really understood what they were doing and nobody saw success in the future. That held true. It wasn't successful."Google Inc (NASDAQ: GOOG) sold Motorola to

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Lenovo Group Limited (ADR) (OTC: LNVGY) roughly two years after it acquired the handset maker. "Will Lenovo be successful with Motorola? I don't think so," Kagan added. "Lenovo is big in the computer business, recently in the smartphone business in other countries. It's possible that Lenovo could be successful with Motorola in some countries. It would probably be the United States."

2. BlackBerry Has Yet To Crack The 'Apple/Android/Galaxy Juggernaut'

On its own, BlackBerry has been unable to penetrate the walls built by Apple Inc. (NASDAQ: AAPL), Google and its Android partners. Kagan isn't sure the walls would come down just because BlackBerry had a new owner."The question is, can they crack the Apple/Android/Galaxy juggernaut that's got 80 or 90 percent of the market here? That's a really hard thing to do," he said. "BlackBerry -- if it was still successful, if it was still hot, if (when you said the name 'BlackBerry') it still had the same buzz it had five years ago -- it would have a much better chance of being a successful acquisition by a number of companies."Kagan said that it gets harder and harder for BlackBerry to turn things around with each passing year."If anyone is buying them, thinking they could turn them around, I don't know who that would be," he concluded.

3. BlackBerry Managers Want To Stay Focused

Global Equities Research analyst Trip Chowdhry expects BlackBerry managers to focus on improving the company's core competency without any M&A distractions."I think BlackBerry's focus just has to be on doing what they do right -- deep security, that's it," Chowdhry told Benzinga. "Only a few sectors in the industry need that: insurance, medical, federal. They won't be all things to all people. They'll be all things to a very small number of people."Chowdhry doesn't expect BlackBerry's hardware to be an important driver of growth."Even if they sell two, three million units of hardware every year but sell software across the industry they'll be profitable," he said. "Their strength has always been deep security. BlackBerry should just keep narrowing its focus but go deeper into that."Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: NewsM&ATechAppleBlackberryGlobal Equities ResearchGoogleJeff KaganLenovoMotorolaTrip Chowdhry