A major purchase of an autonomous vehicle company potentially may have a significant impact on BBRY shares in the coming future. If you haven’t seen the news, Intel has agreed to terms with Mobileye in a $15.3B deal to purchase the Israeli company. The deal elevates the value of companies working on autonomous drive vehicles as Intel shelled out 39 times more than Mobileye’s sales performance and 19.5 times more than their book value.
So why does this matter to BlackBerry? QNX... QNX is already in more than 60 million vehicles and is working on autonomous drive as the world knows. Especially its deal with Ford places QNX very much in the light as a potential acquisition bait. As larger names rush towards the autonomous driving segment there is definitely a potential that BlackBerry or QNX could be targeted for a purchase down the road.
An article written Orange Peel Investments on Seeking Alpha believes that BlackBerry shares could raise anywhere from 34% to 68% in the immediate future. Therefore, based on the closing price of $7.02USD for the end of 13 March 2017, that would mean a new share price of $9.41 to $11.79, numbers which would be a sight for sore eyes for investors, including this one!
However, everything needs to be taken into perspective. BBRY shares are held down due to lackluster device sales and the perception that BlackBerry will remain a hardware competitor – we all know and understand the new BBMobile model but unfortunately, the analysts who write the reports and share forecasts do not. Therefore, it is likely that until BlackBerry proves that its new device model is working or that it completely and utterly quits the device market, then share price will remain low.
Personally, I hope that QNX continues to drive growth and places a new light on BlackBerry as time moves forward. However, the idea of potentially marketing the sale of QNX has to come across John Chen’s mind at some point just hopefully not seriously.