BlackBerry Would Accept a WhatsApp-esque Offer for BBM
BlackBerry (NASDAQ:BBRY) CEO John Chen told CNBC in an exclusive interview that if someone were to offer him a huge sum for BlackBerry Messenger, he would take the cash. “I work for the shareholder. Standard answer. If someone comes to me with $19 billion, I would definitely sell it. I would recommend to the board to take it,” Chen said.
The CEO was asked about BlackBerry’s BBM service on the heels of Facebook’s (NASDAQ:FB) $19 billion purchase of popular messaging platform WhatsApp, announced last week. WhatsApp currently has 450 million monthly active users and Facebook CEO Mark Zuckerberg said that the service is on track to reach 1 billion users in the near future.
The $19 billion scenario was just a hypothetical, as based on WhatsApp’s valuation, BBM would cost about $3.4 billion, according to CNBC. Chen said that he would rather focus on growing BBM as a part of BlackBerry than sell it, although he wouldn’t be able to turn down as large an offer that Facebook just shelled out for WhatsApp. “I don’t look at it that way. I know there’s a lot of value in messaging businesses. … I think the right thing to do is expand that and make it as big as possible and then I worry about the valuation later,” Chen told CNBC.
The news of the WhatsApp deal has made more people hopeful about BlackBerry’s prospects, as BBM is still widely used. The news about Facebook’s buy of WhatsApp was rumored to have a positive impact on the valuation of BlackBerry because of its BBM feature, but analysts still aren’t completely sure how the messaging service should be valued.