Can BB Benefit From The WhatsApp Deal?

Facebook Inc’s awe-inspiring $19 billion bid for fast-growing mobile-messaging startup WhatsApp sent shares of BlackBerry Ltd surging after the closing bell as early as Wednesday, as investors were cheered by the lofty valuation for the messaging platform.

The deal sent shares in BlackBerry up as much as 9 percent in trading after the bell because it put a rough valuation metric around the smartphone maker’s own BlackBerry Messaging service.

BlackBerry Messaging, or BBM as it is more commonly known, was a pioneering mobile-messaging service, but its user base has failed to keep pace with that of WhatsApp, in part because BlackBerry had long refused to open the service to users on other platforms.

WhatsApp, with a user base of some 450 million, has grown rapidly. Its service works on Apple Inc’s iOS platform, Google Inc’s market-dominating Android operating system, along with devices powered by both the Windows and BlackBerry operating systems.

BBM remains popular, even though BlackBerry devices have waned in popularity. Late last year, the Waterloo, Ontario-based smartphone maker finally opened the messaging platform to users of iPhones and Android devices, and the service currently has over 80 million active users.

However, investors have attributed little value to the asset within the company. On Tuesday, Raymond James analyst Steven Li, in a note to clients, broke out a sum-of-parts valuation of the company and pegged the value of BBM at merely $240 million, or $3 per user.

Facebook’s valuation of WhatsApp translates into roughly $42 per user, and that could lead investors and analysts to rethink their valuation of the asset within BlackBerry.

BlackBerry has given no indication it is keen to sell the asset. While there has been some speculation that BlackBerry may seek to carve out the unit, or even sell it, the company’s new Chief Executive John Chen has so far said that BBM remains a core asset for the company.

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Google Search To Add Default Encryption

Google is implementing over the next few weeks default encryption using SSL on searches for users signing in with their accounts, the company said Tuesday.

The move comes over a year after Google made SSL the default setting for Gmail, and also unveiled an encrypted search service.

“As search becomes an increasingly customized experience, we recognize the growing importance of protecting the personalized search results we deliver,” Google’s product manager, Evelyn Kao said in a blog post on Tuesday.

The encryption is expected to be particularly useful for people using an unsecured Internet connection, such as a Wi-Fi hotspot in an Internet cafe, Kao added.

With Google search over SSL, users get an end-to-end encrypted search channel between their computer and Google. The secured channel helps protect search terms and search results pages from being intercepted by a third party, Google said in a description of SSL search.

Over the next few weeks, users will be redirected to a secure search site when they are signed in with their Google Account. The change encrypts search queries and Google’s
results page.

Users can also navigate directly to the secure search site if they are signed out or don’t have a Google Account.

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