1. techvisor's Avatar
    This is an interesting theory, derived from inductive reasoning, which suggests that Lenovo has malicious intent. Also worth noting is the author thinks there is no chance Canadian government will allow the sale.

    Is China's Lenovo Bidding For BlackBerry To Destroy It? - Forbes

    As we learned Thursday, Lenovo Group , the Chinese consumer technology firm, has signed a non-disclosure agreement with BlackBerry in preparation for a bid to buy the struggling Canadian business.

    Lenovo surely knows it will not be permitted to take over BlackBerry. Canadian and American authorities are expected to block any sale to a company subject to Beijings control, even if that control is only indirect, as it is in the case of Lenovo.

    So why is Lenovo in the process of making a bid? In all probability, Chinese government officials want to destroy BlackBerry, just as they destroyed another Canadian tech company, Nortel Networks, last decade.

    For almost a decade, the Chinese hacked Nortel, gaining access to nearly everything on its internal networks. As John Tkacik, a retired chief of China intelligence analysis at the State Department, told Forbes at the end of last week, Not surprisingly, throughout the 2000s, as Nortels networks were wholly accessible to Chinese hackers, the Canadian company found itself underbid by the Chinese in the Chinese market and by Chinese competitors in its traditional global markets. As a result, Nortel declared bankruptcy in 2009. The company was then split up and the parts sold off.

    Nortel was an easy target. BlackBerry, on the other hand, is not. As analysts note, the Pentagon believes the BlackBerry is the one phone the Chinese have not yet hacked, and so it is unlikely they have been able to penetrate the companys internal networks.

    If the Chinese have not been able to get into BlackBerry through the back door like they did with Nortel, why not try the front? Lenovo is in fact using the main entrance by expressing an interest in making a bid. By doing so, the semi-private Chinese firm has a reason to comb through BlackBerrys books.

    The Investment Canada Act and other rules give Ottawa the ability to block acquisitions by foreigners, and its almost certain the Canadian government will use these powers to stop Lenovo. First, Lenovos equipment has already been banned from classified networks in Canada and the U.S., as well as in Britain, Australia, and New Zealand.

    Second, the mood in Ottawa is now hostile to acquisitions by foreigners. The Conservative government of Stephen Harper has rejected three proposed foreign takeovers since it came to power in early 2006, including one this month that took observers by surprise, a deal led by Naguib Sawiris, an Egyptian entrepreneur, to buy a fiber optic network from Manitoba Telecom Services.

    Third, Lenovos bid is much more sensitive than anything that has already been turned down. BlackBerry, despite all its recent troubles, is clearly the phone of choice for Canadian government officials. And their American counterparts too. The Defense Department reports that approximately 470,000 of its 600,000 mobile devices are BlackBerry products. At the end of 2012, there were more than a million BlackBerrys in the hands of Federal and state employees. That includes the most famous of them all, President Obama, who is said to be addicted to his.

    BlackBerry is the prime phone used by all government officials and top officials said Michael Juneau-Katsuya, a former Asia-Pacific head at the Canadian Security Intelligence Service, to The Globe and Mail, the Toronto paper. For that reason alone, it shall not and could not be sold to a foreign entity that is not within the realm of close network of friends.

    Fourth, two Chinese companies thinking of trying to buy BlackBerry recently gave up because they knew they could not get Canadian government approval. Why should Lenovo think it will get a better reception?

    Some say security concerns could be met by separating out BlackBerrys sensitive accounts, but that suggestion misses the point. What is sensitive is BlackBerrys wireless encryption technology. As analysts know, Lenovo wants BlackBerrys tech, and the tech is precisely what will not be sold to the Chinese company.

    Moreover, even if BlackBerry could be split to the satisfaction of the Canadian and American governmentsunlikely, to say the least as the Pentagon has already expressed concern about Lenovothe rump would be tiny. In Q2, the Waterloo, Ontario-based firm had only 2.7% of the global smartphone market it once owned. A separation of BlackBerrys business would leave the part available for Lenovo too small to be worth the effort.

    In any event, Lenovo probably does not have the resources and ambition to save BlackBerry. Hewlett-Packard HPQ +0.43%, with its disastrous Palm acquisition, has already demonstrated how hard it is to rescue such a business, and the jury is still out on Google GOOG -0.21%s purchase of Motorola Mobility. Finally, Lenovo must know that its takeover of the Canadian firm will not be as easy as its absorption of IBMs PC business. As Nam Hyung Kim of Arete Research notes, BlackBerry today does not have as big a market share as IBM had when Lenovo bought its PC business in 2005.

    So why is Lenovo attempting an almost-impossible bid? The only conclusion that makes sense is that the Chinese government wants an excuse to go through BlackBerrys books so that it can learn as much about the company as it did about Nortel. And undoubtedly for the same reason.

    So expect Chinese companiesLenovo and perhaps Huawei and ZTEto underbid BlackBerry time and time again after Lenovo rummages through its books.

    We already know the future of BlackBerry after the Chinese descend on Waterlooit will be the same as Nortels.
    10-21-13 11:45 AM
  2. playbookster's Avatar
    Lenovo is a private company, it is not a Chinese spy agency lol

    Posted from my Z10
    10-21-13 05:53 PM
  3. techvisor's Avatar
    Lenovo is a private company, it is not a Chinese spy agency lol

    Posted from my Z10
    Actually Lenovo is part owned by the Chinese govt, indirectly as a matter of speaking. This will break it down for you:
    http://www.dailytech.com/The+Real+Fa...rticle2962.htm. Personally I don't think this is a big deal, but Ottawa probably feels differently.
    10-22-13 10:50 AM

Similar Threads

  1. BBM4ALL is a GO!
    By 00stryder in forum News & Rumors
    Replies: 208
    Last Post: 10-28-13, 01:28 AM
  2. Breaking: BBM for Android available TODAY
    By Konda in forum BBM on Android
    Replies: 28
    Last Post: 10-22-13, 03:53 AM
  3. Replies: 1
    Last Post: 10-21-13, 12:02 PM
  4. Virtual keyboard for bold 9900
    By robin9895 in forum BlackBerry OS Apps
    Replies: 1
    Last Post: 10-21-13, 11:12 AM
LINK TO POST COPIED TO CLIPBOARD