Ephemera

Tuesday, April 05, 2016

Microsoft BlackBerry merger

This is sheer speculation.  Or wishful thinking. But what if Microsoft just bought BlackBerry?  I know they got their fingers burned with the acquisition and write down of the Nokia acquisition. But. 

BlackBerry is pivoting away from hardware and going back to their core in security and services. And QNX has a 50% market share right now. Microsoft's auto infotainment system has been one of the things that has dragged down Ford's initial owner satisfaction surveys for years now. (But Microsoft's attorneys get an A+ for writing contracts as strong as an iron ball and chain that made Ford incapable of escape.)

So as Microsoft pivots toward their "Microsoft on everything" strategy, but still hedging with their increasingly popular Surface line for professional users...why not bolt on BlackBerry's brand of security? This would also give them access to the QNX headstart in automobiles. That's a twofer deal.

At 7 something a share × 521 million outstanding shares, that means BlackBerry might be worth around 3.7 billion?

(How much did Microsoft spend developing their janky infotainment system?)

But Nadella has telegraphed that Microsoft intends to narrow their focus with respect to mobile devices. And with everything moving to Win 10 continuum, there will probably be no BlackBerry purchase.

And auto? Nobody really wants an infotainment system anymore. They just want to be able to plug the iPhone or Android into a charging port and listen to their favorite tubes or podcast.

So, yeah, probably not going to happen. See, I've already talked myself out of it.