Are BlackBerry's Parts Greater Than the Whole?

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By Todd Wasserman2013-10-10 13:53:31 UTC

Reasoning that its components are worth more than the sum of its parts at this point, BlackBerry is said to be considering selling the company piecemeal.

With financing for a proposed $4.7 billion buyout from Fairfax Holdings in doubt, BlackBerry is weighing offers from SAP, Cisco Systems and Samsung, all of whom are interested in buying parts of the company, according to a report in Bloomberg . BlackBerry has until Nov. 4 to consider other proposals while Fairfax tries to obtain financing.

See also: Is BlackBerry Done?

BlackBerry offered the following statement on the matter:

The Special Committee, with the assistance of the Company’s independent financial and legal advisors, is conducting a robust and thorough review of strategic alternatives. We do not intend to disclose further developments with respect to the process until we approve a specific transaction or otherwise conclude the review of strategic alternatives.

Among the companies interested in BlackBerry, SAP is said to be taking a look at the company's enterprise business. Intel, which is not interested in buying the whole company or parts of it, may be moved to buy some patents. BlackBerry's patents have been estimated to be worth anywhere from $1.6 billion to $3 billion. The company also has about $2.8 billion in cash.

A parts sale for BlackBerry could spell the end for the company. BlackBerry has pulled out of the consumer market and analysts say the only possible future for the company is as a provider of B2B services.

That scenario is far from assured, though. Patrick Gray, president of Prevoyance Group, says that CIOs have embraced mobile solutions that support multiple vendors, making a BlackBerry-only program less attractive.

"I think BlackBerry has always thought we've got this B2B market in our back pocket in case this doesn't work," Gray says. "Now they're knocking on CIOs' doors and saying 'Remember us?'"

Image: Matthew Hurst

Topics: BlackBerry, Business, Mobile