What's going to happen to BlackBerry if Microsoft buys it?

May 26, 2015 13:23 GMT  ·  By
Microsoft, Lenovo, Huawei, and Xiaomi are all said to be interested in buying BlackBerry
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   Microsoft, Lenovo, Huawei, and Xiaomi are all said to be interested in buying BlackBerry

Rumors swirling around these days online claim that Redmond-based software giant Microsoft is looking at BlackBerry for a possible takeover, with some gossip suggesting that the company has prepared an offer of $7 billion (€5.6 billion) to make sure the deal goes through.

This isn't the first time we're hearing about such an acquisition, and it certainly isn't the first time when Microsoft's name is mentioned when we're talking about something on such a big scale as a possible BlackBerry takeover, but before anything, we should take into account that this is all hearsay for now.

These are all rumors and until Microsoft or BlackBerry confirms the talks, nobody can tell for sure whether the software firm has made an offer or not.

But based on these rumors, it's not that hard to imagine what the future of BlackBerry would look like if Microsoft becomes its new owner, especially because the Redmond-based giant could thus complete its second big takeover in just a couple of months, after Nokia in 2014.

BlackBerry is a legend, that's for sure. BlackBerry has always had a small market share, and judging by its latest attempts at the mobile phone market, it has never wanted to get bigger. More specifically, its small market share has been enough simply because it has been mostly made of loyal customers who absolutely love their devices.

BlackBerry users are long-time BlackBerry users. BlackBerry buyers are already BlackBerry owners because, once you get a BlackBerry, chances are that you'll buy another when it comes out.

BlackBerry has that little something that makes you loyal to the brand and eager to buy a new model whenever the company announces it. And in case a BlackBerry user isn't entirely satisfied with their device, they don't jump ship. They choose another BlackBerry. Hardcore BlackBerry fans know this is right.

And it's hard to find the one thing that makes a BlackBerry so special, probably because it's not one, but a mix. It might be the love for QWERTY keyboards, the stability and responsiveness of the operating system, the hub, the courage to launch a square phone like the Passport. Because you need courage to experiment with a phone like the Passport when you're not doing financially well. But that means trusting your buyers.

If you read online reviews of BlackBerry Passport, there are plenty of them claiming that it's a brick, but there are also several that call it awesome. Those are written by people who owned a BlackBerry.

BlackBerry Passport, in the center of the photo, is the current flagship of the Canadian company
BlackBerry Passport, in the center of the photo, is the current flagship of the Canadian company

And you know what the saddest part is? If Microsoft buys all of these from BlackBerry, everything you've read in the last six paragraphs or so is going to disappear. Why? For several simple reasons.

Life under Microsoft's umbrella

Right now, there are so-called analysts and experts out there who believe that BlackBerry cannot survive much longer on its own because its sales aren't exactly as expected.

In March this year, BlackBerry announced the lowest quarterly sales in 8 years, posting revenues of $660 million, which represents a drop of approximately a third compared to the same period of the previous year. Moreover, the Canadian phone maker sold only 1.6 million devices during the quarter, half the number it sold during the same quarter of the previous year.

BlackBerry would have no problem going on like this forever because it already has the know-how to turn things around, and CEO John Chen is actually trying to reorganize the company to sell more software to professional customers and thus bring in cash from something other than phones.

Chen is in the middle of turning things around for BlackBerry.

Assuming that these analysts are correct and BlackBerry ends up bought by Microsoft, it's not hard to predict the future of the company. Because there would be no future.

First and foremost, why does Microsoft have the biggest chances to buy the Canadian firm? Right now, according to the same gossip, Microsoft is competing against Chinese manufacturers, such as Xiaomi, Lenovo and Huawei, to buy BlackBerry. Given the security concerns that might arise if a Chinese firm takes over BlackBerry, regulators are unlikely to approve the deal, so Microsoft is now the first name that comes to everyone's mind.

So Microsoft now has BlackBerry, what's going to happen next? If Microsoft wants BlackBerry, it does it for its patents, not for devices, software, or anything else.

Target acquired: BlackBerry's patents

BlackBerry is a master in the enterprise sector, and this is where Microsoft wants to push harder with Windows 10 Mobile. With access to BlackBerry's patents, Microsoft could finally make Windows 10 Mobile a better rival in the enterprise market, where it's still behind all of its competitors.

Redmond will also launch Windows 10 Mobile Enterprise, a version that, according to the company, “offers the great productivity, security and mobile device management capabilities that Windows 10 Mobile provides, and adds flexible ways for businesses to manage updates. In addition, Windows 10 Mobile Enterprise will incorporate the latest security and innovation features as soon as they are available.”

Security and productivity are the two words that define BlackBerry, so this is how Microsoft can incorporate the Canadians' patents into its own products.

As for the BlackBerry brand, here comes the sad part. If Microsoft buys BlackBerry, the Canadian brand is very likely to disappear. This means that no other BlackBerry model would ever see daylight, as Microsoft would go all-in on Windows 10 Mobile. By keeping BlackBerry alive, Microsoft would cannibalize itself, so letting one go dark is the best option. And we all know Windows 10 Mobile won't be the one.

This could also be the end of powerful QWERTY phones because nobody makes a QWERTY phone like BlackBerry. The Passport is a workhorse thanks to its keyboard, and owners love it despite the fact that it takes courage, time, and patience to discover all its benefits. But under Microsoft's umbrella, the focus won't be on QWERTY, but on full-touch, just like on all the other Lumias out there.

In the end, one thing is sure: if BlackBerry wants to remain the company it has always been, it doesn't need a new owner. It needs a new vision.

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Microsoft, Lenovo, Huawei, and Xiaomi are all said to be interested in buying BlackBerry
BlackBerry Passport, in the center of the photo, is the current flagship of the Canadian company
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