Economics
BB Stock Alert: Is Veritas Capital About to Takeover Blackberry?
Source: Shutterstock
Blackberry (NYSE:BB) stock closed up by a strong 18% today on rumors that private equity firm Veritas Capital is considering a takeover…
Source: Shutterstock
Blackberry (NYSE:BB) stock closed up by a strong 18% today on rumors that private equity firm Veritas Capital is considering a takeover of the once-upon-a-time mobile giant. Indeed, while neither company made any outward comment on the possibility, the news is outright bullish for Blackberry, which has struggled to turn a profit for some time.
What’s up with Blackberry’s latest potential buyer?
Well, according to anonymous sources cited by Reuters, Veritas is in the midst of early talks to purchase the Canadian tech company. If you recall, back in May, Blackberry announced that it would review its assets and consider alternative strategies in order to boost its share value. This included the liquidation of some of its legacy mobile phone patents. In the same month, the firm said it would go through with the sale of patents to Malikie Innovations for up to $900 million.
These days, Blackberry is better known for its cybersecurity software, as well as its Internet-of-Things (IoT) products used in the auto industry.
Meanwhile, Veritas is carving out a tidy reputation for its company takeovers. Indeed, the New York-based firm acquired energy company Wood Mackenzie earlier this year and is in the midst of attempting to buy out Syneos Health (NASDAQ:SYNH).
BB Stock Climbs on Takeover Possibility
After today’s jump, BB stock is up nearly 20% over the past five trading sessions, representing a 58% gain year-to-date (YTD). That’s pretty strong for a company mulling over revenue opportunities.
Unfortunately, however, the stock is far from its historic highs. Indeed, Blackberry is in the red by more than 50% over the past five years. It’s also in the red about 97% from its June 2008 peak. Indeed, the legacy mobile phone maker once traded for as much as $144 per share back then. At the time of this writing, BB trades for just $5.23 per share.
It’s unclear whether anything will come out of Veritas’ expressed interest in the company. Still, investors’ interest has clearly been piqued by the notion today.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.
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