Tuesday, May 5th7.6°C
26088

BlackBerry Messenger under microscope after Facebook buys WhatsApp for $19B

TORONTO - BlackBerry (TSX:BB) shares moved higher Thursday after Facebook Inc.'s US$19-billion bid for WhatsApp caused one analyst to double his valuation of the Canadian smartphone maker's messaging app.

After the sale of the competing mobile messenger service, TD Securities technology analyst Scott Penner said BlackBerry Messenger is likely worth about $800 million, or $10 per user, an increase from his previous estimate of $5 per user.

"Understanding that the valuation is not really comparable, engagement metrics of BBM stack up well with WhatsApp and this deal does highlight the value of messaging platforms," Penner said in a note to investors.

Shares of BlackBerry rose four per cent, or 41 cents, to close at $10.41 on Thursday at the Toronto Stock Exchange.

The Waterloo, Ont.,-based company has been pushing to grow its BlackBerry Messenger platform amongst users who have migrated to competitors like WhatsApp and Kik Messenger over the years.

Last year, BlackBerry made the once exclusively BlackBerry chat application available for iPhones and devices that use the Android operating system as part of a plan to reinvigorate interest in BBM with a goal of eventually monetizing the platform.

The more open version of BlackBerry Messenger immediately took off and had about 80 million users at the end of last quarter but still is far short of the 450 million users on WhatsApp.

While BlackBerry hasn't indicated that BBM is up for sale, chief executive John Chen has emphasized its value. He said it remains a key asset for the company, partly because of its encryption technology which enhances security.

In a roundtable interview with reporters at the BlackBerry's headquarters in December, Chen said he was considering the option of selling versions of BBM with designs that catered to specific employers.

—

Follow @dj_friend on Twitter.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15367.47+27.70
S&P CDNX699.12-0.31
DJIA18070.40+46.34
Nasdaq5016.93+11.54
S&P 5002114.49+6.20
CDN Dollar0.8273+0.0002
Gold1186.90+0.10
Oil59.85+0.92
Lumber247.00-9.30
Natural Gas2.802-0.019

 
Okanagan Companies
Pacific Safety0.135+0.010
Knighthawk0.010.00
QHR Technologies Inc1.48+0.02
Cantex0.04+0.00
Anavex Life Sciences0.3255-0.0045
Metalex Ventures0.10+0.01
Russel Metals27.44+0.15
Copper Mountain Mining1.70+0.18
Colorado Resources0.10-0.00
ReliaBrand Inc0.0059+0.0019
Sunrise Resources Ltd0.04+0.00
Mission Ready Services0.185-0.030
Decisive Dividend Corporation1.85-0.15

 





FEATURED Property
20256123360 Turnbull Road
10085698 bedrooms
$599,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Not the lawsuit type

If I asked you whether you were the lawsuit type, chances are that your answer would be a resounding “NO”. Most people cringe at the thought of being involved in a lawsuit and if you don&r...


The rules are changing

In recent years, a number of countries, including England, Australia and the United States, have changed the regulatory framework that governs their financial institutions. Included have been changes ...


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...

_



26199

26199


Member of BC Press Council


25690