Tomahawk, WI 9/30/2013 (BasicsMedia) – BlackBerry Ltd (NASDAQ:BBRY) seems to have been very busy doing nothing other than defending itself in 2013. The company has been on the news for probably the wrong reasons and this has neither been good for its stock nor the investors who have remained faithful all along. Now, there is even news that Google Inc contemplates buying BBRY. If this move was to go through to completion, it would be not be such a bad idea. But the question here would be why Google is interested in such a move when we know that BBRY has been struggling all along?

 BBRY Might be Attractive to Google

Google’s ability to identify products which attract huge amounts of money has almost become legendary. There is a very good chance that it has seen something in BBRY which the rest of us haven’t. If this is the case, then despite BBRY’s announcement that it has posted loss of around $965 million in its latest quarterly results, Google might just be the company with enough experience and financial power to turn this business around. However, it has a huge battle in its hands bearing in mind that BBRU has seen its revenues drop by close to 49%.

 BBRY Incurs Losses to the Tune of $1 billion

The recent losses incurred by BBRY nearly got to the $1 billion-dollar mark. This was never a surprise to investor s and everyone else who has followed the performance of this stock. The expectation had always been that BBRY was never likely to make profits any time soon. What shocked investors and analysts alike was the amount of money the company lost. Close to a billion dollars is not a small amount and shows that the company is in serious trouble. Anyone who never believed this company was in financial problems must surely now be convinced.

The tough nature of the work facing Google as it attempts to buy BBRY lie in the fact that the latter has close to $960 million in unsold inventory, which it plans to write down. BBRY has also seen it fit to sack close to 4,500 of its workforce, which is close to 40% of everyone it has employed. The company’s bad fortunes have probably been worsened by the fact that its major touch-screen phone, the Z10 model, has endured diminishing results in terms of sales. Google could also benefit from taking some of the sacked workers on board if it buys BBRY.

Google Already Showing Interest in Former BBRY Employees

 However, Google’s plans to buy BBRY may not have been confirmed yet. What has been confirmed is that a consortium led by Fairfax is the one which has made an offer of around $4.7 billion to buy BBRY, thus making it a private as opposed to a public entity. If the Fairfax deal goes through with BBRY, then the industry expects there to be a further loss of jobs at this company. This will benefit companies such as Google which already has a presence in Waterloo, Canada where BBRY’s headquarters is located. It can hire some of these sacked workers.

 BBRY only has one firm offer from Fairfax. It yet remains to be seen if Google will follow suit, or will simply focus on obtaining a number of BBRY assets such as its talented pool of former employees.

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