RE:Whoever Buys Blackberry Will Want The Followingtechfan49 wrote: The company being acquired will have to add positive net earnings to the bottom line of the acquiring company.. Even if the price paid for blackberry is 5 times more than its present capitalization, the price paid is easily justifiable by more added earnings in the acquiring company's quarterly and yearly earnings.
Right now, blackberry will reduce the acquiring company's earnings per share because it has not yet gotten to the point that it is "net earnings profitable"
and even if in the next quarter bbry is profitable, it would need to do this, 4 times in a row.
Chen has said over and over again that more value has to be bult into the company.
In other words, he has to finish his work, and when it is sold, whoever buys it, will be buying a profitable company with a very solid proven business model.
5x? back up the truck then, I'm hoping 50% roi at best, damn that's bullish.