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  • Cherrypicking Nokia, BlackBerry Patch Ripe For Picking 10 comments
    Sep 4, 2013 7:51 AM | about stocks: YHOO, MSFT, BBRY

    A CNBC description of "Microsoft's $7.2 billion deal to buy Nokia's mobile phone business may be as much about hardware as it is about one man-Stephen Elop-and whether he's being groomed to take over the top job at the Redmond, Wash.-based software giant being vacated by the retiring Steve Ballmer." actually gives another perspective on the strategy behind MSFT's move today. MSFT is using its cash war chest to cherrypick strategic mobile assets. Clearly, BlackBerry (BBRY) has few of key underutilized assets their own of interest to MSFT and Elop, starting with its rock solid enterprise BES10 server product and the BBM messaging system which is already under consideration for spin-off. Another possible purchaser for BBRY who has not really surfaced in any media articles is Yahoo (YHOO), as its balance sheet is rock solid. YHOO has never had any talk of a device and services ambition, but BBRY may be a great candidate for a deal on the consumer side of its business, leaving the enterprise products inside of BBRY. Lets take a look at YHOO's balance sheet:(click to enlarge)As you can see, there is plenty of strength here that is untapped and certainly could support an or partial stock deal for BBRY's consumer device assets. It's a idea that may make sense. Marissa should be taking a look, before MSFT's native Canadian Elop takes a holiday trip back to his hometown to shop for some key missing assets for his vision at Microsoft.

    Disclosure: I am long BBRY.

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Comments (10)
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  • Author’s reply » $BBRY could be attractive for $YHOO
    4 Sep 2013, 07:53 AM Reply Like
  • no way. unless marissa meyer isn't there anymore
    4 Sep 2013, 08:53 AM Reply Like
  • Author’s reply » please do explain
    4 Sep 2013, 09:13 AM Reply Like
  • @Tufenk, the first thing Marisa did, when she came to Yahoo as CEO, was to get rid of all the Blackberry phones from Yahoo - why would she change her mind on this? Unless, the bigger plan was to bring down the stock value by initiating such a move so that the buyout value is cheaper for Yahoo! in the long run. Wouldn't such action be deemed appropriate for a lawsuit?
    4 Sep 2013, 09:56 AM Reply Like
  • Author’s reply » Thanks for that info. I don't think she had such a Machiavellian plan when she took the job. But, with all the other players having a device division, she can'y ignore the importance of getting into the space on the cheap. Think there can be a good deal for her to cut and get yahoo users into the a custom taylored device for their site. Let the tumblr team tackle it, they seem to have mojo with users.
    4 Sep 2013, 10:24 AM Reply Like
  • Months ago my dark horse choice was Yahoo. But after the debacle of the HTC First, I think Facebook would be wary of dealing with flaky manufacturers again and instead follow the Apple/Google/and now Microsoft model of owning the headset.
    4 Sep 2013, 08:57 PM Reply Like
  • Author’s reply » So you think $FB is a candidate?
    5 Sep 2013, 06:02 AM Reply Like
  • I do. FB's share price has rocketed back up to its IPO price due to one thing: accelerating growth from mobile revenue. It seems the big boys have decided that owning the headset is the best way to optimize design, software, manufacturing, and supply chain, among other things. Therefore, I wouldn't be surprised if FB buys out BB's headset business.
    5 Sep 2013, 06:15 AM Reply Like
  • Author’s reply » $BBRY Funny, take a look at my article from Dec last year :-)
    5 Sep 2013, 06:32 AM Reply Like
  • I remember reading your article. At that time I didn't think FB was a legitimate candidate because I thought they were only focused on the software. But after FB tipped its hand and partnered with HTC to produce the "Facebook" phone, I'm convinced now that FB wants to get into the headset business in a big way. Kudos to you for seeing the FB-BB connection so early; especially of note is the value you placed on BBM which, of course, BB is now thinking of splitting off from the main company.
    5 Sep 2013, 06:50 AM Reply Like
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