Research in Motion Ltd. (NASDAQ:BBRY) – also known as BlackBerry Ltd. – is generating some buzz in the tech marketplace. First, there has been positive feedback about the company’s new BlackBerry 10 operating system and the Z10 smartphone, though there have been reports of underwhelming or modest sales since the device’s release in January. As the company, which has been teetering on the edge or complete irrelevance, has recently secured an enterprise contract with the German government, and some of this buzz is generating some attraction for those in the M&A world.
In other words, the recent work by Research in Motion Ltd. (NASDAQ:BBRY) is making the company attractive to those companies that could afford to acquire it. So even though BlackBerry is not for sale – officially – the rumors seem to still swirl. The latest one seems to have gotten more legitimacy to it, as a second executive of a tech company has now spoken out and referred to BlackBerry specifically.
Lenovo chief executive officer became the second top executive in that company this year to make some comments that specifically mentioned Research in Motion Ltd. (NASDAQ:BBRY) as a possible. CEO Yang Yuanqing said to a French newspaper when asked about a possible acquisition, that considering BlackBerry “could possibly make sense, but first I need to analyze the market and understand what exactly the importance of this company is.”
This comments follows up on one by Lenovo CFO Wong Wai Ming in January when he said the company was “looking at all opportunities,” which seemed to include Research in Motion Ltd. (NASDAQ:BBRY). This new talk has affected the BlackBerry stock very positively. The stock, which was up about 10 percent on the year, has jumped 11 percent just Monday alone as of 1:40 p.m. ET, to $14.50 a share. The 52-week high for the stock is north of $18 per share.
What do you think? Is there some legitimacy to the takeover talk surrounding Research in Motion ltd. (NASDAQ:BBRY)? Do you think BlackBerry will ultimately be absorbed into another company, and which company are you putting money on? We’d like your thoughts in the comments section below.
DISCLOSURE: I own no positions in any stock mentioned.
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