BlackBerry Ltd (NASDAQ:BBRY)’s CEO, John Chen, had recently announced that his company would be happy to partner with Apple Inc. (NASDAQ:AAPL) for security solutions. However, this would only be done if Apple came to BlackBerry for it. Now the rumor mill states that Apple could be in talks to acquire the entire company. Even though the two companies have not really been arch rivals in recent years, but analysts still believe that the deal is highly unlikely.
Whether the rumors are true or not, they did help the BBRY stock rise strongly. While Apple may be the manufacturer of one of the most widely used smartphones in the world, BlackBerry still holds an edge over the company in terms of security. So much so that some of the solutions are even being utilized by the defense department. Mr. Chen had previously indicated that the company might be in talks to provide security solutions to Apple, but there has not been any significant response.
Only recently, BlackBerry had deployed some of its software on iOS, Android and Windows phones. Citing this Mr. Chen stated that we are rivals, not enemies, if we are going after the same customer base, we can be friends and compete. Additionally, BlackBerry has been increasingly focusing on security solutions, rather than smartphones.
Part of this change is the belief of Chen that Apple has a vast app eco-system one that the younger generation is attracted to. So it would seem wise to stop wasting precious resources on expensive smartphones. The new CEO also has had backing from investors, who showed their trust by raising the stock 40% from last year. It should, however, be noted that BlackBerry had been up for sale in 2013, but had failed to find a suitable buyer. However, until some solid news about potential talks emerge, the rumor is not one to be believed in.
BlackBerry Ltd (NASDAQ:BBRY) closed at $10.46 after gaining 5.92% on May 11. The company has 529 million shares being traded in the market, with a 52-week range of $7.16-$12.63.