Now that BlackBerry (TSX:BB) is officially on the block, what is the company actually worth?
With shares tacking on a double-digit gain yesterday and up another 10% at press time today, investors are betting that BlackBerry is worth more to someone else strategically, or chopped into parts.
This week’s bump is share price has vaulted the company back above a six-billion market cap. Is it worth more than that?
One analyst says BlackBerry’s various parts add up to a baseline value of $10-$12, but the company could fetch a higher price, depending upon how much a potential suitor wants something it has, such as its subscriber base or patents.
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Anil Doradla, analyst at William Blair & Company, was on BNN’s “The Street” today to talk about the value of the Waterloo-based mobile device maker. Doradla, who has a “Market Perform” rating on the stock says BlackBerry’s patents could be valued at $1-2 billion on the low end to $3-4 billion on the high end.
The company’s “infrastrucutre and operating system”, he says, could be valued at between $2-3 billion.
Then, he says, you have BlackBerry’s 72-million subscribers. Doradla says this asset is harder to peg a net-present value for. He notes that some people believe it is worth nothing, others as much as five or six billion.
But the price of BlackBerry, he says, is ultimately dependent on how much someone wants all or part of the company’s assets. That, he reminds, is a complete unknown at this stage.
On June 28th, BlackBerry reported results for the three months ended June 1st. The company lost $84-million on revenue of $3.1-billion. BlackBerry had $3.1 billion in cash and short term investments.