Lenovo Might Be Interested In Buying BlackBerry


BlackBerry Ltd (BBRY) might have another interested buyer in the form of Lenovo, says a report the The Wall Street Journal. According to the Journal, Chinese computer manufacturer Lenovo has signed a non-disclosure agreement with BlackBerry to review the financial documents of the company.

Strategic Fit to Lenovo

Nothing can be said with confidence, as of now, but for Lenovo, the acquisition of BlackBerry seems a fit from the strategic point of view. CEO of the Chinese PC maker Yang Yuanqing said in a statement to Wall Street, in August, that he is aware of the growing significance of mobile, and Lenovo needs to adjust into the rapidly changing scenario. However, Yuanqing preferred not to answer when he was asked if BlackBerry will be a probable acquisition.

Whether or not Lenovo is interested in the smartphone portfolio of BlackBerry to take forward its smartphone series or is it just interested in operating system and keyboard patents, the question though a big one has no answers, as of now.

Security concerns

Wall Street Journal reported that if the deal is sealed between Lenovo and BlackBerry then it will be “one of the biggest and most noteworthy of a Western company by a Chinese company”. The deal will be subjected to scrutiny of Canadian and the United States Government regulators.

According to security experts, BlackBerry’s secured network, which is one of the most important assets of BlackBerry as everyday around millions of confidential corporate and government emails are send through this network, will be sold to a North American entity due to security stakes

The device segment can be a buying option for Asian companies. Further, government in Canada has immense power to veto any foreign takeover of a Canadian assets or company if it feels that deal is not beneficial for the country as per the Investment Canada Act.

BlackBerry other options available

Earlier, the troubled Canadian smartphone maker was in talks with Fairfax Financials, which along with its consortium of investors gave an offer to buy BlackBerry for $4.7 billion. BlackBerry in a bid to gain interest of its investors and users published an open letter, recently, where the company asked investors, fans and partners to keep their faith on BlackBerry. Though the Canadian smartphone maker recognized the challenges ahead, but reassured everyone that it was stepping onto some most difficult decision to strengthen itself.