What a Samsung Purchase of BlackBerry Could Mean for Both Companies

By Todd R. Weiss

BlackBerry released its latest smartphones, the $449 BlackBerry Classic and the $599 BlackBerry Passport, in the second half of 2014. Its devices provide an enterprise-centric approach that could help Samsung bring in more enterprise customers.

BlackBerry was founded in 1984 under its former Research In Motion (RIM) persona, and the BlackBerry name and product line was first introduced in 1999. Now called BlackBerry, that legacy could be an important attribute to Samsung customers.

In November 2014, BlackBerry updated and enlarged its broad BES enterprise mobile security portfolio through the introduction of new products, ranging from the latest BES 12 Enterprise Mobile Management platform to an Android security partnership with Samsung.

Another big gain for Samsung if it acquires BlackBerry is the company’s reputation for quality and performance. For years, its devices were the “enterprise gold standard” for mobile business communications. Though it lost tremendous market share to Apple and others, that reputation is largely intact.

Back in August 2013, several IT analysts told eWEEK that BlackBerry’s mobile technology and security patents at the time could be worth some $10 billion if the company were sold. Those patents—for BES, devices and much more—would bring huge value to Samsung.

If Samsung buys BlackBerry, it would give existing Samsung customers a wider portfolio of products to choose from, particularly when it comes to BlackBerry’s enterprise-aimed smartphones and mobile device management applications. This could be huge for both firms.

Any deal would be even better if BlackBerry’s CEO, John Chen, stayed after a merger. Chen is a huge part of the company’s recent resurgence, and he is trusted and admired by business users. He’s a bit of a rock star in the staid business world and would be a valuable asset for Samsung.

The existing smartphones of Samsung and BlackBerry are different enough that they wouldn’t have huge overlap. Sure, Samsung has its enterprise-aimed Galaxy Note 5 phablet, but it’s different enough from the BlackBerry Passport in size and keyboard to not cannibalize sales.

The double-barreled marketing, reputation and distribution synergies that could come from such a merger should not be minimized or overlooked. Both well-known corporate names could gain goodwill, increased trust and deeper user bases if they join up, and that could be worthwhile.