Google, Cisco & Samsung Among Potential Tech Buyers of BlackBerry

In September BlackBerry received a $4.7 billion buyout offer from Canadian holding company Fairfax Financial, but it's still pursuing possible deals with other companies. Google, SAP and Cisco are among a number of technology companies interested in buying up portions — or all — of BlackBerry’s business, according to Reuters. The company, based in Waterloo, Ontario, has asked for preliminary expressions of interest from potential strategic buyers, which also include Intel Corp and Asian companies LG and Samsung, by early next week.

It is unclear which parties will bid, if any. But the potential technology buyers have been especially interested in BlackBerry's secure server network and patent portfolio, although doubts about the assets' value remain an issue, the sources said.

Late last month, days before BlackBerry reported a $965 million quarterly loss (due mostly to a write-down on unsold Z10 devices), it signed a letter of intent to go private. Its largest shareholder, Fairfax Financial Holdings, is the prospective buyer, tabling a $4.7 billion bid for the company.

Google, Intel, Cisco, LG and SAP declined to comment. Samsung was not immediately available for comment. Potential bidders are apparently proceeding with caution, given the level of uncertainty around BlackBerry’s business and questions over the future value of its business assets.

While Google’s interest is likely to be in BlackBerry’s patent portfolio. Android has faced renewed legal attacks in recent weeks, with Nokia’s lawyers scoring a preliminary win against HTC‘s Android-powered One flagship device in the U.S. last week. Google’s 2011 acquisition of Motorola was also widely touted as a patent-focused purchase aimed at bolstering Android’s IP defences. So its due diligence for Mountain View to at least take a closer look at BlackBerry’s patents. Samsung may also be eyeing those.

BlackBerry’s patents are estimated to be worth between $2 billion and $3 billion, and its security-focused messaging system services business is likely worth $3 billion to $4.5 billion. The company also has $3.1 billion in cash and investments — however with revenues sliding and more loss-making quarters looming, that cash is going to get eaten up pretty quickly. Reuters cites Bernstein analyst Pierre Ferragu’s prediction that the company will burn through almost $2 billion over the next year and a half.

Meanwhile, BlackBerry’s long-touted plan to extend the reach of its consumer mobile messaging service, BBM, to Android and iOS – perhaps with the hope of creating another business asset it could shop around to buyers – has stalled.

BBM was initially slated to launch on the new platforms globally late last month but the rollout was halted after a leaked version of the Android .apk overloaded its servers. The company has since said it remains committed to launching BBM on Android and iOS but given no new timeframe for when this will happen. In the event, it may be that BlackBerry’s bits get broken up and sold off before BBM is able to make the leap onto other platforms.