There's no question that rumors have a tendency to cause heavy movement in the market; and a big rumor just started to make it's way along major news outlets. The rumor is that Apple plans on buying out BlackBerry. If this were the case, it could mean big news for traders and investors alike. So, we're already starting to see activity in the market revolving around this rumor. To ensure that you're not one of the people that ends up losing because you got caught up in the excitement, I think it's important that I share my ideas on the prospective acquisition. Personally, I don't think it's going to happen. Here's why…
Take A Look At BlackBerry
At first glance, you may think that BlckBerry would consider an acquisition. The company made it big in the smartphone space. However, when Apple came out with the iPhone, and Google started to produce Android phones, BlackBerry just got left in the dust. So, looking at things from this perspective, I could see where an acquisition can make sense.
However, it's important to remember that great companies evolve to become profitable; and BlackBerry is indeed a great company. Although, when you think of BlackBerry, the first thing that probably comes to mind is cell phones, that doesn't seem to be the main focal point for the company anymore. Instead, BlackBerry is doing more and more to ingrain itself into what's becoming known as the Internet of Things. With overwhelmingly good news coming out surrounding this mission recently, it's hard to imagine that the company would be in talks of acquisition by anyone else…even Apple.
Now Let's Look At Apple
I can understand the root of the rumor from Apple's perspective as well. The reality is that for the past several months, Apple has been facing a slew of patent infringement lawsuits. Those lawsuits revolve around the iPhone and the iPad. So, once again, at first glance, it seems as though Apple would want to purchase BlackBerry to protect its better interests in the mobile devices space.
However, once again, I don't think that people are taking in the full story here. If you believe that Apple is infringing on patents, the acquisition rumor makes sense. However, I believe that patent infringement couldn't be further from the case. The reality is that most of the companies going after Apple are 1 to 3 man operations that have never developed a product in the history of their existence. Not to mention, as the largest company in the world, I'd imagine that Apple's legal team has done a bit of research to ensure that patents weren't infringed upon before products launched. So, there's no need to protect better interests by acquiring BlackBerry; Apple's mobile device game is flawless!
How You Can Profit Knowing This
Knowing that chances of Apple buying out BlackBerry are incredibly slim, there's an opportunity to make money when either Apple or BlackBerry debunks the rumor. When this happens, chances are that BlackBerry will fall off the highs it's seen as a result of a rumor; giving the binary options trader the opportunity to earn from put options!
What Do You Think?
Do you think an acquisition is going to happen? Why or why not? Let us know in the comments below!