BlackBerry recently announced its first Android-based smartphone. (Photo : Reuters)
The recent $7.5 billion buyout offer by Samsung to BlackBerry is under discreet negotiations, Reuters reported.
Samsung Electronics is reportedly offering BlackBerry Ltd. (BBRY.O) (BB.TO) the huge amount aiming for its valuable patent since it is battling the corporate market with Apple (AAPL.O) today. Initial offer of the Korean electronics giant proposed was said to be $13.35 up to $15.349 per share which is equal to 38 percent to 60 percent of BlackBerry's current trade price.
Decision makers from both companies have met the earlier week to further discuss the proposition. They rather not be found out as of yet since the transaction is still under negotiations. Privacy over the matter is strictly observed.
BlackBerry's shares of stocks soared up to a 30 percent high stake on Wednesday, Jan. 14 and hit a hard plunge on the after-hours trading as reports of an upcoming acquisition by Samsung Electronics will take place soon, according to USA Today.
The Canadian based enterprise technology pioneer denies the allegations of a possible acquisition. Reports said that it has ignored other takeover offers these past months and is confident that the recon structure plans will compensate its stock values than any buyout offers. With this, the shares plummeted to a 15 percent drop, $10.78 in the after-hours trading.
On the other hand, Samsung has been open about its plans to acquire the rising business market for mobile technology. Being at the forefront of manufacturing smartphones for the consuming public today, a timely takeover of the BlackBerry enterprise platform it would make a great impact on the corporate market.
The disclosed transaction will have to undergo regulatory analysis from Ottawa and Washington. According to the Canadian law, any takeover of BlackBerry from foreign grounds requires a mandatory government authorization under the Industry Canada Act.
BlackBerry has managed the electronic mail traffic of thousands of large corporate entities which includes government and military agencies across the globe, using secure networks from the enterprise magnate.
Samsung, however, anticipated such complexity with regard to acquiring approval from the Committee on Foreign Investment in the United States (CFIUS).
