Microsoft Corporation (NASDAQ:MSFT) announced that it would be acquiring Nokia Earlier this month. The deal has been seen as an effort to increase Microsoft’s share in Smartphone market. Recently it has been the news of newspapers that Microsoft is planning to acquire Smartphone Company, BlackBerry.
The Canadian billionaire investor Prem Watsa has already announced its intention to acquire the former leader of the Smartphone market for $9 per share. There are some reasons why it should acquire BlackBerry.
First reason is that this deal is cheap. Even with its new devices and operating system, BlackBerry Ltd (NASDAQ:BBRY) is failed to recapture smart dominance. For this reason BlackBerry could be bought for a discount. In opinion of some analysts Market value of BlackBerry’s is $5.3 billion, a figure that show undervalue of the company.
The second reason is that Microsoft gets security as the BlackBerry’s ability to provide security is famous. BlackBerry has been used by the corporations, government, and hospitals for many years because it has excellent security function. For this security reason president Obama also use BlackBerry.
Hess wrote that Microsoft could acquire BlackBerry Ltd (NASDAQ:BBRY) its security technology that will allow Microsoft to use the technology and make the BlackBerry a first choice again for businesses.
Third reason is its instant market share. According to an IDC press release last month, BlackBerry came in with a 2.9% market share, with shipments fell 11.7% year-over-year. If Microsoft Corporation (NASDAQ:MSFT) will actually to acquire the company, it would instantly bring Microsoft’s market share to 6.6%. With an acquisition, Windows could steadily shift those BlackBerry users over to the Windows Phone platform and increase its market share.
Fourth reason is that it offers Killer Mobile Messaging. BlackBerry has been the founder of messaging app like BlackBerry Messenger, for both Android systems and iOS. This is the company’s most accepted application for customers. If Microsoft acquires BlackBerry, it would allow another fully-fledged technology to connect users.
Fifth reason is that it offers a Lot of Patents. BlackBerry’s most attractive asset is its intellectual property. The most popular holdings are QNX Software Systems, QNX is precious, and also some other BlackBerry’s patents are valuable. The BlackBerry patents may not be as intentionally precious, but QNX and other valuable patents would certainly contribute to Microsoft patents and would certainly increases its intangible property
Sixth reason why Microsoft acquires BlackBerry is that It Offers Vital Personnel. Microsoft is very new in hardware industry, the acquisition also bring valuable hardware engineers to the company. Highly skilled engineers are very difficult to hire and Microsoft will get the skills of these personnel due to this acquisition. These engineers not only help Microsoft to start production of its own quality smartphones, but they could also bring new ideas to Microsoft products.
Seven reason is that it offers a Smart Start on Smart Cars. Due to QNX Software Systems, the company has a strong share in a currently growing market the smart cars. General Motors uses QNX software it is vital to GM’s OnStar service. BlackBerry interests to use QNX’s automotive technology to allow car companies to update car software through wireless networks and to monitor mechanical state of the vehicles’.”
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