Facebook help to raise BlackBerry share on bidding it

By
Rachel Fletcher
-
0
5996
John Chen, chief executive officer of BlackBerry Ltd., speaks on a Passport smartphone during a Bloomberg Television interview at a product announcement in Toronto, Ontario, Canada, on Wednesday, Sept. 24, 2014. The square-screened Passport is BlackBerry's first major new device slated for a global introduction since Chen set out in November to turn around the company by shifting away from the consumer market toward business and professional users. Photographer: Hannah Yoon/Bloomberg via Getty Images

Facebook Inc’s breathtaking $19 million bid for fast-developing mobile-messaging software WhatsApp routed shares of BlackBerry Ltd spewing following the closing bell on Wednesday, as shareholders were cheered through the high valuation for the messaging program

The deal delivered shares in BlackBerry around 9 percent in trading following the bell since this put a tough survey metric round the Smartphone maker’s unique BlackBerry Messaging program. BlackBerry Messaging, or BBM since it is more generally identified, was the revolutionary mobile-messaging support, but its person base has didn’t keep pace with this of WhatsApp, simply because BlackBerry experienced long refused in order to open the support to users upon other platforms.

WhatsApp is continuing to grow quickly. Its support operates on Apple Inc’s iOS system, Google Inc’s market-ruling Android operating-system, and products driven by both Windows and BlackBerry OS.

BBM continues well-liked, even though BlackBerry devices have decreased in acceptance. Later last year, the Waterloo, Ontario-based Smart phone manufacturer finally opened up the messaging program to users regarding iPhones and android gadgets, and the service presently offers over 80 million users. Yet, investors have ascribed little significance to the asset within the organization.

Facebook’s worth of WhatsApp converts into approximately $42 for each user, and that may direct investors and also analysts to re-think their valuation within BlackBerry.

After spewing excessive 82 within post-market trading upon the NASDAQ shortly after the WhatsApp deal had been introduced, shares in BlackBerry compensated on about $9.54, almost 6 % above their final price of $9.01 a share.

RELATED ARTICLESMORE FROM AUTHOR