Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Following a nearly 30% pop just before Wednesday's close, shares ofBlackBerry Ltd dropped 30% early Thursday after the company denied a Reuters report that it has meet with Samsung regarding a possible takeover bid by the South Korean electronics giant.
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So what:Shortly after the initial reports broke, BlackBerry issued a press release stating it's aware of the press reports regarding Samsung, but has "not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry." Further, the release elaborated, "BlackBerry's policy is not to comment on rumors or speculation, and accordingly it does not intend to comment further."
Now what:Though I urged caution with regard to the news yesterday, Samsung's interest seemed to make sense given both BlackBerry's hoard of intellectual property, as well as the fact the two companies announced a new partnership this past November to integrate BlackBerry's BES 12 enterprise software with Samsung's Android-centric KNOX security system.
In any case, while Reuters stood by its original report -- which cited both "a person familiar with the situation" and documents seen by Reuters -- it's hard to blame the market for driving shares back down today given BlackBerry's denial.
The article Why BlackBerry Ltd Stock Plummeted Today originally appeared on Fool.com.
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