Seeking Alpha

Qualcomm's name gets thrown into BlackBerry M&A report

  • A couple hours after reporting Cerberus is exploring a joint bid for BlackBerry (BBRY) with co-founders Mike Lazaridis and Doug Fregin, the WSJ reports Qualcomm (QCOM) is in talks to join the effort
  • It's unlikely Qualcomm would have much interest in BlackBerry's hardware ops, which compete against the mobile chip/IP giant's largest customers. But it could find some value in BlackBerry's sizable patent portfolio.
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Comments (23)
  • LYogi
    , contributor
    Comments (2424) | Send Message
     
    shares spiking AH up 4.5%
    1 Nov 2013, 04:56 PM Reply Like
  • Richard0623
    , contributor
    Comments (149) | Send Message
     
    Everyone pile in!

     

    Suggests a better potential offer price if there's so many parties involved
    1 Nov 2013, 04:58 PM Reply Like
  • Gtg007
    , contributor
    Comments (94) | Send Message
     
    Nice bro! want to see double digits soon
    1 Nov 2013, 04:58 PM Reply Like
  • LYogi
    , contributor
    Comments (2424) | Send Message
     
    more parties on a singular bid = more capital available, less risk to each participant, and hopefully a win for the long investor.
    1 Nov 2013, 05:01 PM Reply Like
  • Blkwtrdragon
    , contributor
    Comments (79) | Send Message
     
    Unlike the Nortel caper, chance of a bidding war is slim . That said, PW might be forced to firm up the deal just to get the break fees. If he abandon the tentative offer to buy, the stock will tank on Monday then interested parties will come in but not before. Almost pull the trigger to get out this afternoon but still holding.
    1 Nov 2013, 05:23 PM Reply Like
  • Toastypro
    , contributor
    Comments (430) | Send Message
     
    Since there are lawsuits filed against Google and cellphone manufacturers including Samsung, LG, ASUS, HTC, Pantech, ZTE and Huawei. I want to see a bid from the Android consortium to buyout the Blackberry patent rights. It maybe a plus for these companies to defend the lawsuits. It will be like Nortel consortium against another Nortel consortium.

     

    The last minute action going on with Blackberry, everyone pile in before it is too late.
    1 Nov 2013, 05:24 PM Reply Like
  • BugleBoy
    , contributor
    Comments (201) | Send Message
     
    @LYogi,
    From one long to another: Does more parties on a singular bid mean less competition for a higher final price? No bidding war if they are all in the same party room??
    Just curious on your thoughts.
    Cheers
    1 Nov 2013, 09:43 PM Reply Like
  • LYogi
    , contributor
    Comments (2424) | Send Message
     
    My thoughts are that whoever makes a bid realizes that the institutional shareholders are not going to give the company away so I suspect that we will see a bit of at least $10-12 a share if a bid materializes.

     

    With more partners it means that each takes on less risk so therefore they might be willing to pay a higher valuation if it means securing the tender of the other shareholders like us.

     

    Hard to predict what will happen.
    1 Nov 2013, 11:48 PM Reply Like
  • mirage12
    , contributor
    Comments (98) | Send Message
     
    Interesting call. I got out at $11 after a loss but am tempted to buy some cheap $12 jan calls but held off. Would love to see a bidding war for all the longs but I see $11 being near the top end. For all those who have been involved, this has been a hell of a roller coaster.
    2 Nov 2013, 10:28 AM Reply Like
  • BugleBoy
    , contributor
    Comments (201) | Send Message
     
    I see your point, and I think you are likely close to heart of the issue.
    In all of this drama, the one action that people have predicted for months and months is the short squeeze; yet it has never materialized. I'm totally puzzled by that one. Nerves of steel for those folks, I guess.
    2 Nov 2013, 07:52 PM Reply Like
  • Toastypro
    , contributor
    Comments (430) | Send Message
     
    Based on the list of known interested parties and Blackberry asset categories, I gave following percentage breakdown. My prediction is heavily toward ML with GS backing and the weakest link is PW who failed to get the financing to take over entire Blackberry. Maybe Board will let the PW's offer to expire on Monday and take other offers later without getting hit with penalty.

     

    Board better be busy for next two days tallying up which is the best deals for the shareholders, only about 48 hours left before the truth to be told, or we could get skunked (10% chance).

     

    BEOS & BBM
    ML: 30%
    Cerberus: 20%
    PW: 20%
    Facebook: 10%
    Google: 5%
    Cisco: 5%
    Other: 10%

     

    IP (Including patents, QNX and Certicom)
    Cisco: 20%
    Qualcomm: 20%
    Google: 10%
    ML: 20%
    PW: 10%
    Facebook: 10%
    Others: 10% (Apple, Microsoft, Samsung, Cerberus, Lenovo,?)

     

    Blackberry Network
    Cerberus: 30%
    ML: 25%
    PW: 20%
    Cisco: 10%
    Faceboook:10%
    Other: 5%

     

    Blackberry Phone
    Lenovo: 40%
    ML: 25%
    Facebook: 20%
    Cerberus: 10%
    PW: 5% (asset sales)
    2 Nov 2013, 11:16 PM Reply Like
  • Kenpogi
    , contributor
    Comments (56) | Send Message
     
    This is really nice one...
    Let's see over the weekend...
    1 Nov 2013, 05:07 PM Reply Like
  • mapshop1@optonline.net
    , contributor
    Comments (306) | Send Message
     
    Better than a movie.
    1 Nov 2013, 05:48 PM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    This is shaping up to be like an ebay bid. Everyone waits till the last moment to put in a bid. Just goes to prove that most media analysts don't have a clue what really is going on. They mistake silence and no one saying anything as a sign no one is interested in BB. Nothing is farthest from the truth. The weekend should be interesting to say the least.
    1 Nov 2013, 05:20 PM Reply Like
  • rrosey2
    , contributor
    Comments (783) | Send Message
     
    Why do some people insist on beating a dead horse.
    1 Nov 2013, 08:25 PM Reply Like
  • mapshop1@optonline.net
    , contributor
    Comments (306) | Send Message
     
    Rosey,

     

    Can you be more specific as to identifying your "dead horse" and exactly what convinced you that she is dead?
    1 Nov 2013, 10:36 PM Reply Like
  • rrosey2
    , contributor
    Comments (783) | Send Message
     
    She, the dead horse, is the old, outclassed, bbry.
    2 Nov 2013, 02:49 PM Reply Like
  • usajordi
    , contributor
    Comments (207) | Send Message
     
    Had been a crazy Friday for the shareholders of BBRY, but one thing
    that keep coming back and is how was possible that the BOD had accepted to sign any agreement of the caliber that the Prem Watsa offer represented.
    And having accepted to pay 250 Million USA $ for nothing more than a worthless paper is still more hard to believe, specially considering that PW had zero compromises and can walk away at his will, not putting any money on the table!
    It looks like that deal was negotiated under PW terms maybe because they were under blackmail treats from him otherwise is impossible to understand!
    When you joint a BOD you have a fiduciary duty that carry full responsibility and if you brake the laws, you can be accountable for
    all your life time, specially when you play with others money!
    To me the BOD has to come forward, resign and issue the statement that the deal signed with PW is null and void!
    And reduce the termination penalty of TH to zero for the damage that he had caused to the company this year!
    To all shareholders:
    You all deserve better days ahead with BBRY!
    Next in line: Going to Waterloo to write a book about the successes and misery at BBRY during all this years!
    And if the book is great, movie will follow!
    2 Nov 2013, 10:16 AM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    I doubt the stock will tank if Watsa pulls out, since now there is a potential bid that will most likely succeed. And not a lot of hot air like the Watsa bid.
    2 Nov 2013, 10:18 AM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    More surprises in store, i think you may see one more high profile investor joining in the Bid along with Mike Lazaridis and Doug Fregin. It's not a good time to be shorting the stock.Beware get out now!!!!! while you still can.
    2 Nov 2013, 10:20 AM Reply Like
  • Userfriendly kernel
    , contributor
    Comments (68) | Send Message
     
    Qualcom in now. I knew that apple wanted the technology.
    2 Nov 2013, 10:21 AM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    I sure hope the SEC finds who is leaking insider tips to the short traders every day at 12:00 PM. Hope they go to jail if caught.
    2 Nov 2013, 10:30 AM Reply Like
  • usajordi
    , contributor
    Comments (207) | Send Message
     
    Crazy Mary!
    Last Thursday at 2:28 pm the some traders put strong selling orders feed by the insiders and started pushing hard the stock down!
    We should investigate all substantial drops that happen during this year, including the Thursdays prior to the reports of surprise bad earnings, and find out who were the ones that put big orders to sell.Maybe Prem Watsa an insider during almost all year was one that was able to play short through his other corporations in the Fiscal Paradises!
    Specially June 28th the most important day as it cut the value of BBRY a couple of billion Dollars!
    The tips from insiders had existed at BBRY along the 2013 one hundred per cent guaranteed.
    All affected will have to bring Lawyers and take depositions at the right people at BBRY and should find who gave the tips, and the ones who received them and shorted the stock deserve long periods locked behind bars!
    3 Nov 2013, 08:46 AM Reply Like
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