BlackBerry downplays report about Samsung acquisition

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Big news about one of Canada’s most recognized companies — BlackBerry.

At one time it was a leader in smartphone technology around the world.

But now according to reports, a new leader in that category is looking to take it over.

Samsung has reportedly offered to buy BlackBerry for as much as $7.5 billion U.S.

This doesn’t come as a complete surprise, as the two companies signed a deal in November to share some of BlackBerry’s security software and some of Samsung’s new technology.

Marvin Ryder from the DeGroote School of Business says while many people may be sad to think about an iconic Canadian company being taken over, there could be worse scenarios for BlackBerry than having Samsung take it over: “Samsung is a beneficial buyer I don’t think they’re going to go in and rip everything apart and fire 10,000 employees. I think they’re going to keep as much of it intact as possible. Therefore, there are worse potential partners. And if this does secure the future for most of the employees and most of the technology, I could think of worse outcomes. It’s always sad. I would like to see a way this company could survive without that white knight riding over the hill. But, if this is the best outcome, it’s far better than it could be.”

BlackBerry’s stock rose to its highest level today since early 2012 with its shares spiking nearly 30 percent following the report. But Ryder says people should be cautious. Right now, this takeover is just a rumour. He believes the companies will come forward in the next 24 hours or so to clear it up one way or another, as it’s their duty to their shareholders.

But a late development says that Blackberry is downplaying the report. The Waterloo company says it “Has not engaged in discussions with Samsung with respect to any possible offer.”