The Pentagon plans to purchase 80,000 BlackBerrys, saving the company from total oblivion.

[88m3]

Photograph by Simon Dawson/Bloomberg

For a while there, it looked as if BlackBerry’s (BBRY) market value was going to be eclipsed by ’90s-era R&B outfit Blackstreet. But on Tuesday, the Canadian company was extended a lifeline from U.S. taxpayers. The U.S Department of Defense is about to roll out a fancy new wireless network, and the primary device it wants to use on it are BlackBerry handsets. The Pentagon plans to purchase upwards of 80,000 BlackBerrys, helping send the company’s stock sky high—it’s close to $11 a share right now, up from $5.75 six weeks ago.

The Defense Department isn’t picking BlackBerry just to be contrarian; concerns about data security remain at least as high as ever, and BlackBerry is further along than such competitors as Samsung (005930:KS) and Apple (AAPL) when it comes to matching the requirements set by the Pentagon.

The move also validates BlackBerry Chief Executive Officer John Chen’s strategy of returning the company to its enterprise roots. BlackBerry began with a revolutionary product that took hold in large businesses and institutions until the rise of the iPhone pushed BlackBerry to focus on consumers. That was the worst idea ever, and now the company is trying to return to what it knows best.

Story: BlackBerry Renews Its Vows to the Smartphone Keyboard
Maybe BlackBerry should take this to its logical conclusion. Apple and Samsung are making big inroads in private industry, a market BlackBerry used to rule. Making up the lost ground there is probably too hard (particularly with employees telling IT departments what they want to use, not the other way around). But this defense contract raises the possibility that, just maybe, BlackBerry’s future is best secured as a defense contractor, or as part of one. Providing wireless communications to the armed services and other government agencies? That’s worked out all right for General Dynamics (GD), SAIC (SAIC), and L-3 Communications (LLL). It’s a lot better than some of BlackBerry’s other options.

Video: Why Is BlackBerry Selling Properties in Canada Now?

 

[DEAD7]

 

[Suicide King]

The company would survive if it downsized, instead of trying to operate as if it still has huge market share.

 

[Yapdatfool]

Talk about crackberries... our gov't hittin' the pipe.

 

[ill]

The stock has been on a rocket ship since it bottomed out in the 6's.

 

[Blackking]

 

[Suicide King]

 

[88m3]

The stock has been on a rocket ship since it bottomed out in the 6's.

Think they'll go private?

 

[ill]

Think they'll go private?

I'm not sure. It could really go either way. One of the founders tried to take it private this past year and he failed, which is partly why the stock tanked down to $6. They are selling large assets like buildings, downsizing the workforce, and are finally splitting off pieces little by little. They are unlocking the value of what they own and its reflecting in the stock price. Stock has been red hot the past few months. They have a chance to maintain their company and they are finally realizing it won't be through their conventional businesses.

 

[NatiboyB]

The general and staff that signed off on this guarantee jobs for themselves once they retire.

 

[ill]

The general and staff that signed off on this guarantee jobs for themselves once they retire.

Probably, but this move was made because the security on Android/iOS phones isn't all that great. BlackBerry's infrastructure allows it to have one of the best security systems in the world and thats why the military keeps buying BB's

 

[NatiboyB]

Probably, but this move was made because the security on Android/iOS phones isn't all that great. BlackBerry's infrastructure allows it to have one of the best security systems in the world and thats why the military keeps buying BB's

I had a blackberry in my last unit can't do shyt on it they control everything and they audit the fukk out of them most of us just end up using are regular phones.

 

[88m3]

I had a blackberry in my last unit can't do shyt on it they control everything and they audit the fukk out of them most of us just end up using are regular phones.

Isn't that the point though?

 

[NatiboyB]

Isn't that the point though?

No if they issue them they should make you feel comfortable using it most people end up using there own phones so much so to the point there was no reason to buy this but rather just make sure the phone companies offer a little more discount.

 

[tru_m.a.c]

i honestly didn't have any beef with my blackberry

love my s4…but I was cooking with the bb storm