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IHS Technology Senior Mobile Analyst: 'A Merger Between LG And BlackBerry Would Not Make Sense'

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Speaking to Benzinga, IHS Technology Mobile Analyst Daniel Gleeson said that a merger between LG Electronics and BlackBerry Ltd (NASDAQ: BBRY) would not make sense.

“They each have their individual strengths, with LG focusing on the consumer market and Blackberry on their enterprise,” he said.

Gleeson added that LG comes at the handset market from a software point of view based on its strength in displays, while Blackberry comes from a software point of view.

“The combination of these would most likely mean a clash of corporate cultures, rather than enhancing each other’s strengths,” Gleeson explained.

Such a merger wouldn’t reach the levels of scale necessary to drive sufficient savings to boost either the LG or BlackBerry smartphone units, Gleeson said. He suggested a better solution for both companies would be for LG to license Blackberry enterprise and security software for use on its existing Android smartphone, like Samsung.

BlackBerry is trading 1.20 percent lower in Wednesday's session.

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