And QNX’s future isn’t just limited to car infotainment systems. The operating system is already used in nuclear reactors, medical devices, parking meters, and credit card machines. Basically QNX is your go-to choice wherever the cost of failure is high. If BlackBerry has a future outside of smartphones, this is it.
The break-up play
With its share price declining, many analysts think BlackBerry is worth more dead than alive. Could the company be broken up and sold for a hefty premium? To be fair, I have been an advocate of this idea previously. But recent developments have caused me to question that theory.
First – consider the value of the company’s patents. Two years ago, analysts estimated the value of this portfolio could be worth between $3 billion to $5 billion. But it’s unlikely BlackBerry could fetch anywhere near that today as the value of patents have fallen considerably.
Second – can anyone name a potential buyer? Last year, BlackBerry shares traded down to $6 yet no one stepped in to pick up the company. Given recent developments, a buyout is even more unlikely.
International Business Machines Corp. (NYSE:IBM) was previously rumored to be interested in purchasing Research In Motion Ltd (NASDAQ:BBRY)’s service business. But after the operation bled four million subscribers last quarter (and those losses are accelerating), IBM has probably lost interest.
Could Microsoft Corporation (NASDAQ:MSFT) buy BlackBerry?
While an acquisition would support Mr. Softy’s push into the mobile space, Microsoft Corporation (NASDAQ:MSFT) is much more likely to acquire Nokia Corporation (ADR) (NYSE:NOK) due to the companies existing partnership. If a deal is struck the software giant could gain access to Nokia Corporation (ADR) (NYSE:NOK)‘s distribution channels, hardware expertise, mobile patents, and manufacturing facilities. This could allow Microsoft to create a new superpower in the smartphone space.
Earlier this year the Wall Street Journal reported both companies were in acquisition talks, but the deal fell through due to Nokia’s weak position in the marketplace. However, strong sales of the Lumia 920 handset may bring Microsoft Corporation (NASDAQ:MSFT) back to the bargaining table and represent a big upside catalyst for Nokia Corporation (ADR) (NYSE:NOK) shares.
Foolish bottom line
So here’s the Research In Motion Ltd (NASDAQ:BBRY) bull thesis – BB10 isn’t dead yet. The Q10 handset has just been released in the United States and we can’t declare the launch a failure until we see those results. Right now the stock is priced for total collapse.
I’ll concede that point.
The article 3 Mistaken Reasons to Buy BlackBerry originally appeared on Fool.com and is written by Robert Baillieul.
Robert Baillieul has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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