Microsoft is just about to conclude their purchase of Nokia’s handset division this Friday, which will leave the company with a loss-making mobile phone division which sells more than 50 million dumb phones each quarter and close to 10 million Windows Phones.
The $7.2 billion purchase will take a while to pay for itself, but there is another company which Microsoft should be looking at snapping up before Google or Apple gets their fingers in.
That company is Blackberry, who still owns 26% of all phones used in enterprise, and who is one of the largest mobile device management companies with a service which can manage Blackberry, iOS, Android and soon Windows Phones.
Even more than Nokia, purchasing Blackberry will be synergistic – giving Blackberry new credibility and removing uncertainty about their future, while instantly giving Microsoft a strong foothold in enterprise with a cross platform solution.
Of course Blackberry will have to ditch Blackberry 10, but given that less than 10 million of those handsets have been sold ever this is no big hardship.
Getting rid of Blackberry’s loss-making handset division will allow Microsoft to reap the pure profits from its high margin MDM division, and for Microsoft to cross-sell Windows Phones in areas where Blackberry handsets still matter.
Given that Blackberry is worth less than $4 billion at their current share price, the deal would be a steal which will soon pay for itself.
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