BlackBerry Harbors Plenty of Valuable Assets for Potential Buyers

By Don Reisinger | Posted 2013-09-17

With BlackBerry's recent decision to appoint a special committee to look for ways to maximize the company's value to shareholders, it looks as though company management is losing hope that it could ever return the company to stability and growth. "Maximizing a company's value," is a euphemism for selling off the company as a whole or in pieces. Now, investors and market analysts are wondering what might be the choicest cuts of the BlackBerry carcass. For its part, BlackBerry has said that it won't leave anything off the table in terms of how the company is offered to prospective buyers. More recently, news cropped up suggesting that the companies considering making a bid for BlackBerry have designs on splitting up the device maker. Those companies, which have yet to be identified, believe that some parts of BlackBerry's business are more valuable than others, and the best way to see a positive return on their investment is to cut the fat. This slide show examines which portions of the company might be worth the most to potential buyers. Overall, things might be going poorly, but there is no shortage of value inside BlackBerry.

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BlackBerry Harbors Plenty of Valuable Assets for Potential Buyers

by Don Reisinger
All Those Patents Are Valuable

There's a reason BlackBerry hasn't been hit with countless patent lawsuits like Apple or Samsung: its patent portfolio is too strong. Would-be buyers know that BlackBerry's patents are strong, and they'd love to buy them to take the upper hand in whatever litigation they're facing.
There Are Still a Lot of Intelligent People

Although there's been a bit of a "brain drain" at BlackBerry, the company still has quite a few people in the upper echelon who can effectively manage anything related to device production and software development. For companies trying to break into the mobile space, especially, that's extremely important.
BlackBerry Enterprise Server

BlackBerry Enterprise Server could be an extremely important consideration for any company looking to acquire BlackBerry. The company's enterprise offering is arguably the best platform on the market that allows an IT department to manage everything going on in the office. Look for Samsung, which has its own alternative called Knox, to eye Enterprise Server.
The Loyal BlackBerry Following

Sometimes, acquiring a company is about more than just the tangible things. And in that respect, BlackBerry's loyal following is of some value to companies looking to acquire the device maker. Although BlackBerry's following is dwindling, a large number of people still love the company and continue to buy its products. Any smart company would see value in that.
BlackBerry's Appeal in Emerging Markets

BlackBerry is still a successful device maker in emerging markets around the world. In parts of South America, BlackBerry is surprisingly popular. The company has also been able to deliver cheaper devices to other key markets. Considering the importance of emerging markets going forward, some companies could see value in that.
The Enterprise Keeps BlackBerry Afloat

Any company trying to attract enterprise customers to its products would be smart to take a look at BlackBerry. Although its popularity is on the decline, the corporate world still invests heavily in BlackBerry products. Perhaps most importantly, BlackBerry has employees—including engineers and salespeople—who know how to work with enterprise customers.
The BlackBerry Network Is Huge

Before Thorsten Heins became BlackBerry's CEO, the company was reportedly eyeing a partnership with mobile carriers that would allow them to offload data-heavy tasks, like Short Message Service (SMS), to BlackBerry's network. Believe it or not, BlackBerry's network, which runs the company's email, calendaring and BlackBerry Messenger, is exceedingly robust. And it shouldn't surprise anyone if a carrier acquires that division for its own gain.
A Head Start for New Entrants

There are some companies that want to break into the mobile market, but don't have the resources to pull it off. For those companies, acquiring BlackBerry seems like a good idea. The firm that acquires BlackBerry would have a built-in customer base in the mobile space and not need to invest so heavily in resources to get up and running. It would seem like a good idea at first blush.
Hardware Design Is in Its Blood

Although BlackBerry's devices haven't been the most appealing, the company knows how to deliver hardware to customers. With that in mind, companies should remember that BlackBerry has the basic foundation in place to build high-quality hardware. What the company truly needs right now is some direction and an eye on design that a new owner could provide.
The Brand Still Matters

The topic of "goodwill" becomes somewhat important when evaluating BlackBerry's value. The "BlackBerry" brand is still well-respected by consumers and enterprise customers. That means some companies could be considering acquiring solely the BlackBerry name to have immediate appeal on store shelves and establish their own presence in the marketplace.
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