Blackberry, who was previously known as Research In Motion, saw its stocks rise by more than ten percent in the US and Canadian markets on Monday after Lenovo CEO Yang Yuanqing told a French publication that the Blackberry buyout could possibly make sense.
“External growth is all about opportunities,” Yang told French financial newspaper Les Echos. “You can not rely solely on it to develop. So we will rely primarily on our own forces, while remaining vigilant on the market and its players. But first I have to analyze the market well.”
Lenovo is one of the biggest Chinese hardware manufacturers and the company is getting stronger by the day. Lenovo’s strength lies in the low-budget market. However, when it comes to the mid and high-end segment, the company has a very tiny market share. Acquiring Blackberry could change all that thanks to the Canadian phone maker’s premium brand reputation, brand new operating system and upper segment user base.
However, Lenovo, being a Chinese company, will have a tough time convincing US regulators to approve the sale. The reason being that most of Blackberry’s users in the US are members of government agencies and massive corporates. Also, it’s worth noting that Blackberry has now made a comeback with its new Blackberry 10 operating system and range of devices, putting it back on the road to prosperity.
by RTT Staff Writer
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