Samsung to buy BlackBerry - report [update]

BlackBerry shares leap on rumour of buyout

Samsung has offered to purchase Canadian smartphone vendor BlackBerry for $7.5bn, sources have told the Reuters news agency.

While neither company has yet commented on the rumours, the source said that senior executives met last week to discuss a potential deal.

BlackBerry shares rose 30 per cent on the news today, peaking at $13.05 before falling back slightly in after hours trading.

While BlackBerry's smartphones have fallen from grace over the past few years, with new models, while well received, failing to provide the hoped-for up-swing in the company's fortunes, its security credentials have never been in doubt. It is the vendor's many security patents that are likely to be of most interest to the South Korean electronics giant.

With most of Samsung's smart devices running Google's popular but insecure Android operating system, the company has made a number of attempts to harden the platform in order to make its phones and tablets more attractive to enterprise users. These measures include licensing its Knox mobile security software to Google in order to beef up Android.

Acquiring BlackBerry's security know-how could be just the thing to see Samsung really get taken seriously by enterprises ever conscious of the consequences of data breaches.

For BlackBerry, too, this could be seen as a satisfactory outcome to its year-long turnaround under CEO John Chen. To ease its financial troubles, BlackBerry began last year to sell off the majority of its Canadian real estate, a move that is due to be competed in the first quarter of this year.

Certainly the company has had its work cut out to return to former glories, as Computing's recent research makes clear.

UPDATE

BlackBerry has denied being in discussions with Samsung. On its website the company says:

"BlackBerry is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry. BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. BlackBerry's policy is not to comment on rumors or speculation, and accordingly it does not intend to comment further."