Could Another Buyer for Blackberry Emerge?

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Sept. 24 (Bloomberg) -- IDC Research Chief Research Officer Crawford Del Prete discusses Blackberry’s assets and its potential $4.7 billion deal with Fairfax Financial. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Opening the possibility of another by your.

Could black hairy attract a better offer?

For more on that, i am joined by crawford del pratt.

What is your take on fairfax wanting to take back their he private?

I think when you look at blackberry overall, obviously this dump and he is in a real challenge here.

They are losing money.

A potential buyout good or bad news for them?

Right now the potential buyout is good news for them.

Right now the stock is going to slide.

People feel like it is starting to swirl around.

This basically says wait a minute, we see value in the company.

We see value at nine dollars per share.

Then you start to say that as cash, talking about $2.5 billion of the i p could be worth.

That is pretty low numbers.

You think another buyer could step in?

I think the calculus is happening right now.

I would say unlikely that another buyer could show up.

I do think that when you start squeezing out the assets, their -- fleshing out the assets, there are a lot.

They are assets in the network.

They have a secure network that they basically have built out.

I have been in operation center.

These are sophisticated.

These people are watching the traffic going across the network.

Would google be interested in more secure network?

Michael angelique beast call this a cesspool of malware.

Could they say we will offer blackberry as a service ? and could that be a way to credibly go in there?

If they did something like that, would that be an acknowledgment that the rest of the network is not a secure?

It all comes down to how dialed up your customers are.

Some customers have a different level of security.

Governments for example.

State and local government.

People dealing with hip up.

Google could buy it and would not necessarily advertise it.

Secure google and more secure google.

What happens to the devices?

Two scenarios.

Either the device business is likely wound down and the crackberry is no more, or more of a long shot.

Someone like wall way or is the te might want to come in and buy the handset business because there is some i.t. associated and they could maybe make a go of the handsets, particularly in in emerging markets where they have nice traction.

That is on a you say, a long shot.

Lex i think most likely the device business would cease to exist going forward.

Going private could benefit them.

It would give them a chance to regroup in shed businesses that are massively consuming cash.

Takes hundreds of millions of dollars to build up the inventory to build all the products that did not end up selling.

This would the a much less cash- hungry company if they decided to focus on software and network.

If they decided to focus on management software, this would give them the opportunity to decide are there businesses we just simply do not want to the end and other businesses we want to be more in going forward?

I think this would give them opportunity to restructure and emerge as a public company.

And a comparison to dell?

I think the parallels to dell are is this will take some time.

The business environment they are operating in goes at lightspeed and simply cannot change the engines quarter to quarter under the scrutiny of investors when apple is running so fast and android products are running so fast and mike you -- ike rosato nokia are going to the same space.

Much like dell said the same thing.

If we're going to build out an enterprise strategy and pc strategy, maybe we need to rethink the ways we do that and how we put the pieces together.

Lex my last question was going to be michael as a reader us -- my last question was a going to be about michael lazaritas.

I have known michael for a long time.

He is obsessed with security and secure experience.

I think if he is involved, i would think the remaking of blackberry is leveraging on that secure a searching and secure noble computing experience.

I would think he may be involved.

Do not know.

I would also think that's blackberry as a service and the software and services they could provide could be a way to leverage the security outside of handsets going forward.

What about volatility?

I do not know.

My speculation is he has moved on at this point.

I would think they would be thinking about bringing him back for the technical expertise.

Crawford del pratt.

This text has been automatically generated. It may not be 100% accurate.


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