Samsung Electronics does not want to acquire BlackBerry Ltd (NASDAQ:BBRY) but instead develop a better partnership with the company, J.K. Shin has revealed according to a report from The Wall Street Journal.
The comment from the Samsung Electronics co-chief executive came after rumors emerged last week that BlackBerry Ltd (NASDAQ:BBRY) was in talked with the South Korean consumer electronics giant for a possible $7.5 billion acquisition.
“We want to work with BlackBerry and develop this partnership, not acquire the company,” Shin was quoted by the publication as saying in a statement.
As part of this effort partner with BlackBerry Ltd (NASDAQ:BBRY), Samsung is in talks with the company, The Wall Street Journal reports. This is just not the kind of talks wherein they are discussing a takeover.
It has been pointed out that part of the reason why an acquisition may make sense for Samsung is because of the Canadian company’s reputation in the security sector.
Vlad Savov of The Verge includes it in his three reasons why Samsung should just buy BlackBerry. These reasons include the company’s patent portfolio, the additional profit BlackBerry’s unsexy divisions will bring and the strength of its QNX platform especially given the rise of the Internet of things.
However, Shin told The Wall Street Journal that it is not looking to acquire BlackBerry Ltd (NASDAQ:BBRY) if having a better foothold in the security market is their only concern. Samsung has its own security platform called Knox.
“We are satisfied with the progress of Knox, including the quality of security and protection that it enables, and remain committed to Knox over the long term,” Samsung said, according to the Wall Street Journal.
BlackBerry’s stock rallied after news of the potential buyout. However, the stock was routed when both companies denied any acquisition talks.
Kenneth Tropin’s Graham Capital Management owned 721,100 BlackBerry Ltd (NASDAQ:BBRY) shares by the end of September. The stake was added for Graham Capital Management’s portfolio in the third quarter of 2014.