Seeking Alpha

Lenovo reportedly signs NDA with BlackBerry

  • Dow Jones reports Lenovo (LNVGY.PK) has signed an NDA to look at BlackBerry's (BBRY +1.6%) books. The report comes two days after one from Bloomberg indicating an NDA has been signed with Cerberus.
  • Lenovo has been featured in BlackBerry M&A speculation more than once this year, in part due to comments from Lenovo execs. But the Chinese PC/smartphone vendor's relatively small market cap could be an issue, as might national security concerns (should Lenovo want to acquire BlackBerry's network).
  • BlackBerry has rallied a bit on the report.
Comments (36)
  • Kenpogi
    , contributor
    Comments (55) | Send Message
     
    Cool!
    The reason a sudden jump on the SP.
    More NDA please?
    17 Oct 2013, 02:49 PM Reply Like
  • pvshah6542
    , contributor
    Comments (89) | Send Message
     
    NDA could only be for buying Hardware and related patents.
    17 Oct 2013, 02:51 PM Reply Like
  • Dampflok
    , contributor
    Comments (787) | Send Message
     
    They are picking over the pieces parts now.
    17 Oct 2013, 02:53 PM Reply Like
  • Dantes_Will
    , contributor
    Comments (323) | Send Message
     
    Lenovo buying BBRY may be the best thing that can possibly happen for the other 3 major ecosystems. Every developed nation that is not China will drop BBRY device use in government or corporate environments.

     

    State controlled companies, Huawei and ZTE already give the PLA back door access to their radio base stations. Lenovo is no different, with several 'princelings' from the old party heading the company. If Lenovo gets their hands on BBRY, you can kiss BBRY security goodbye.

     

    Take a look at Lenovo sales after they bought ThinkPad from IBM. Sales tanked due to Lenovo's piss poor quality control. Add that to the security concerns and it will be a death kneel for BB10 hardware.

     

    There are currently 100MM+ legacy BB7 devices in use today. Most users are already looking to switch out of BBRY, else they would have adopted BB10 by now. Fallout will be even worse if the Lenovo buys the company.

     

    This will be a boon for Windows, iOS, and Droid adoption.
    17 Oct 2013, 04:32 PM Reply Like
  • gwynfryn
    , contributor
    Comments (3883) | Send Message
     
    There may well be "princelings" heading the company, but there is no sign of PLA involvement (who pretty much own those other companies) and Lenovo is set up very much like most western companies and is more open than many, so I'd say the security issue is overblown. As for your claim of poor quality, how would they gain from deliberately reducing the quality standards previously employed by world beating IBM? This makes no sense whatsoever with modern construction techniques, and according to what I've read, Lenovo produce rather good quality products, and avoid the "lowest costing parts" methods of such as Acer. I suspect you are being economical with the truth.
    18 Oct 2013, 08:22 AM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (1868) | Send Message
     
    Good luck w/ any foreign investments...

     

    Financial Post:

     

    Harper government is just making up foreign investment policy as it goes along

     

    http://bit.ly/1cWNn16
    17 Oct 2013, 02:58 PM Reply Like
  • ciolan
    , contributor
    Comments (193) | Send Message
     
    They can get only the device business and license the brand name for mobile phones. That's hardly national security, I see no reason not to pass.
    17 Oct 2013, 03:09 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (1868) | Send Message
     
    Read the article, it is not that simple. This is Canada...
    17 Oct 2013, 03:15 PM Reply Like
  • ciolan
    , contributor
    Comments (193) | Send Message
     
    Well, anything can happen, but: 1) the article is clearly subjective, it's interpreting news; and 2) handset business is clearly super-benign compared to fiber optic network or what was it that that company had.
    17 Oct 2013, 03:29 PM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    Won't happen but great if the price goes up because of it.

     

    The HW division is the only one Lenovo would be allowed to purchase.
    17 Oct 2013, 02:59 PM Reply Like
  • LYogi
    , contributor
    Comments (1986) | Send Message
     
    just the beginning....several other companies will come out of the woodwork in the coming days to express interest in BB.
    17 Oct 2013, 03:00 PM Reply Like
  • atnmpg
    , contributor
    Comments (55) | Send Message
     
    7 more NDAs and we're back at $10 :-)
    17 Oct 2013, 03:02 PM Reply Like
  • Toastypro
    , contributor
    Comments (338) | Send Message
     
    Blackberry can sell everything to Lenovo except Certicom and related security patent. They are probably interested in Blackberry brand and hardware.
    17 Oct 2013, 03:04 PM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1427) | Send Message
     
    Well if the Canadian Government and the US don't want Lenovo to buy it then the Governments should sweeten Prems deal or Lazardis's deal.
    It would be hilarious for the Canadian Government if Lenovo offered 20$ for BB and the Government wouldn't let them buy ...he he a Free Market Gov. nixing a deal.
    17 Oct 2013, 03:04 PM Reply Like
  • LYogi
    , contributor
    Comments (1986) | Send Message
     
    I'm thinking JV on this development is most likely scenario
    17 Oct 2013, 03:06 PM Reply Like
  • Toastypro
    , contributor
    Comments (338) | Send Message
     
    The answer to this problem is a simple one, Have the Canadian Gov't buyout for $10B and keep the jobs open in Canada if the security is that important or give $10B in Gov't sponsored loan to ML. Why is the Canadian Gov't keep stepping into private enterprise?
    17 Oct 2013, 03:45 PM Reply Like
  • perryy
    , contributor
    Comments (81) | Send Message
     
    If the American and Canadian governments rely so heavily on bb for security, they should stop the press from killing bb or sending it to the oblivion. Or, better still, let the America and Canadian governments buy the company.
    18 Oct 2013, 05:17 AM Reply Like
  • Splenosis
    , contributor
    Comments (14) | Send Message
     
    Let's keep the NDA's rolling in!
    17 Oct 2013, 03:06 PM Reply Like
  • Randal James
    , contributor
    Comments (2318) | Send Message
     
    Marie Callendar's files NDA

     

    http://bit.ly/1as0fpI

     

    :)
    17 Oct 2013, 03:30 PM Reply Like
  • ciolan
    , contributor
    Comments (193) | Send Message
     
    Shorts are really brave at this point not covering. It's like an accident waiting to happen. It's like, if you like, the way we longs behaved when the stock was 11, earnings were due in a few weeks, bad news kept coming in, but we just hoped (or "knew" better). We got burned ( I know I did), but now the table has reversed. I'm hungry, gimme some short blacbkerry pie.
    17 Oct 2013, 03:18 PM Reply Like
  • sfinvestor
    , contributor
    Comments (883) | Send Message
     
    why would the shorts be scared? Another day, another NDA. Haven't you heard, BBRY is solicating others.

     

    Your BOD just accepted $9 ones-sided deal that no one believes will happen. anyone that want to buy anything from BBRY just need to offer $9 and not a red cent more.
    17 Oct 2013, 03:53 PM Reply Like
  • LYogi
    , contributor
    Comments (1986) | Send Message
     
    I wouldn't bank on that sfinvestor...the $9 was a smoke screen to establish a timeframe for the sale/auction/partnership of the company.

     

    If you think that BBRY and its assets will go for $9 then I've got a bridge to sell you!
    17 Oct 2013, 03:59 PM Reply Like
  • ciolan
    , contributor
    Comments (193) | Send Message
     
    sfinvestor, I respect you, I am one of your 9 followers. I should have acted based on what you were saying previous to the earnings report. You probably won more than a bucket full of cash by shorting BBRY, so even if it goes to - say - 10$/ share, you're still in the green. That being said, now it's quite clear to me that odds - at least for the next month or so - are that the SP goes higher. Another offer will come and even if it will not be accepted by the Government, it will still shake the short tree, pretty much mirroring the delusional confidence we had prior to the earnings report. That's what I'm betting for anyway.
    17 Oct 2013, 04:12 PM Reply Like
  • sfinvestor
    , contributor
    Comments (883) | Send Message
     
    Ciolan,

     

    I am in the M&A business for many years, and damn , BBRY was once my client.

     

    The biggest leverage is yourself, when you don't believe in yourself, you just will not command the price. BBRY is letting everyone that can breath access their books and trade secret. It is a desparate company with no negotiating leverage. $9 is the celiling.

     

    In 2008, Samsung offered Sandisk a 30% premium to buy Sandisk, and they say F___ off, you are not touching my book and sure as hell not going to look into the IT roadmap. In the last three months, everyone looked at the corpse that is BBRY, there is no secret left. If I was Lenovo, I'll just take notes like eveyone else, why not, it is all available.
    17 Oct 2013, 04:17 PM Reply Like
  • dfedak
    , contributor
    Comments (114) | Send Message
     
    Funniest thing I've read in a while. Thanks for the comedy.
    17 Oct 2013, 05:15 PM Reply Like
  • Alphabetsy
    , contributor
    Comments (92) | Send Message
     
    @sfinvestor
    I'm in agreement with you on this even though I'm long $BB.

     

    How can anyone negotiate from such a position and expect to optimize any value they may have. This may be in part the reason for their current state of affairs.

     

    Thanks for your thoughts
    17 Oct 2013, 07:24 PM Reply Like
  • sfinvestor
    , contributor
    Comments (883) | Send Message
     
    @ciolan,

     

    I think I know what I am talking about. The secret to investing is understanding the company so well that you see things from the BOD perspective. A lot of soft languages provided by BBRY told me they were in deep trouble.
    4 Nov 2013, 04:53 PM Reply Like
  • Chris Lau
    , contributor
    Comments (1572) | Send Message
     
    It looks like the rise and fall of (BBRY) is greatly exaggerated, and that the final chapter might be the 11th hour bid. Lenovo makes great hardware. If Lenovo could do what it did for (IBM)'s hardware business, it could push BB hardware in 3rd spot.

     

    Lenovo has a good reference design to work on: Z30. So far, the feedback on all social channels are positive. Big screen, 25 hour battery, OS 10.2. Z10 is now a budget phone, so in 2014, a Lenovo Z31 could do really great things.
    17 Oct 2013, 03:45 PM Reply Like
  • farmwersteve
    , contributor
    Comments (267) | Send Message
     
    I'm loving my z30. Definetly a bit bigger than what I was used to, but it's getting more and more comfortable every hour I use it

     

    I already had 10.2 on my z10, but this sure is a great package

     

    Too bad it's such a well kept secret.

     

    It is pretty funny looking at the iPhone now, they seem so tiny and dated. Too bad though that blackberry didn't have iPhone marketing skills.

     

    This z30 is frigging awesome though
    17 Oct 2013, 04:00 PM Reply Like
  • LYogi
    , contributor
    Comments (1986) | Send Message
     
    You have to think that other companies have taken notice of BB10 and the Z30 and recognize the future when they see it....
    17 Oct 2013, 04:05 PM Reply Like
  • farmwersteve
    , contributor
    Comments (267) | Send Message
     
    The mobile computing has also become a reality with miracast and the usb hub
    17 Oct 2013, 04:15 PM Reply Like
  • 806313
    , contributor
    Comments (17) | Send Message
     
    I saw a video about mobile computing on Z30 last night. It is interesting. I always have a question in my mind. If BBM goes live on other platforms and the share price goes up from there, will BB be able to decline and say no to all bidders?
    17 Oct 2013, 05:19 PM Reply Like
  • usajordi
    , contributor
    Comments (207) | Send Message
     
    Great that the I Phones look tiny and dated compared to the Z30!
    Lets give Lenovo a full chance to bring BBRY back to glory!
    Yes they can!
    17 Oct 2013, 05:43 PM Reply Like
  • gwynfryn
    , contributor
    Comments (3883) | Send Message
     
    Unfortunately, Samsung already have competing products out, that have far more (and more effective) advertising backing them up. If BBRY remain asleep at the wheel, the Z30 will change nothing!
    18 Oct 2013, 08:30 AM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    The Z30 is doing well, it's a solid device with Great battery lifeand a rock solid 10.2 OS. Blackberry just needs a partner to do the hardware side, and they will gain traction with this amazing phone!
    17 Oct 2013, 10:44 PM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    for a company that nobody wants to buy they nsure are getting a lot of attention. Especiaally interesting is the the fact that in the past Lenovo kept saying they were not interested in Blackberry. I wonder how many other companies that aren't interested looking at Blackberry. Where is Marcap i want to see what he has to say about this?
    18 Oct 2013, 07:08 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|