Microsoft to buy RIM?
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It's hard to argue that RIM is losing its smartphone momentum - not only this notion is now treated as a common sense thing, but also there is some very persuasive evidence pointing in that direction - its profits and revenue are plunging, people in the mobile industry seem to agree that Windows Phone is sure to overcome BlackBerry OS in the coming years, not to mention that Mike Lazaridis, RIM's co-CEO, doesn't act like a man who is able to turn around the Canadian company's failing fortunes.
Its BlackBerry World announcements - the new BlackBerry OS 7.0 (previously known as BB OS 6.1) and its two new handsets - did little to dispel the fears that RIM is lagging behind the smartphone curve. That's only iterated by the fact that Steve Ballmer's appearance during BB World fueled previous speculations that the Redmond-based company may purchase RIM at some point in the future.
Here's what Harry Wang, director of mobile research at Parks Associates, says on the subject:
"Will Microsoft buy RIM? That is a possibility and a fast track for Microsoft to gain a foothold in the mobile hardware business."
He goes on:
"RIM's market capitalization is only $25 billion and Microsoft has $48 billion in cash. If RIM's value drops to $15 billion, it will become an attractive target for Microsoft. Maybe Steve Ballmer was planting that seed during his keynote appearance at Blackberry World."
The analyst says we shouldn't expect such a deal to be announced in the next year or so. Of course, it goes without saying that this move may never materialize - especially if RIM's transition period goes well. However, if things don't work out for the Canadian manufacturer, there is some chance that Microsoft may buy it for its enterprise appeal:
"There's a 50 percent probability that, in about two years, Microsoft will make a big and bold more to acquire large hardware vendors. RIM will be the best target because it has a user base that Microsoft is looking for: enterprise customers. And they are in the key, fast-growing area that Microsoft isn't very successful at yet, the mobile world. The need for Microsoft is so urgent in mobile, yet RIM is a perfect entry."
As you can see, there is nothing certain in this analysis - there are plenty of "ifs" and "buts" in it. What's your opinion on it, though - would you be happy if Microsoft purchases RIM or you feel it would be a shame if the Canadian company is no longer in the mobile game?
source: PC Mag
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36 Comments
1. protozeloz posted on 09 May 2011, 08:08 6 2
I hardly think It will happen... but just in case I hope Google outbids them...
20. Lucas777 posted on 09 May 2011, 17:15 3 0
r u kidding me? a dual core torch with wp7 would be so epic
23. downphoenix posted on 09 May 2011, 19:54 1 1
actually lets hope Google DOESN'T outbid them. Google OR Apple. BB should either remain indy and crash and burn on its own faults or let MS buy them out.
26. protozeloz posted on 10 May 2011, 08:57 0 0
well Google will probably expand the service to be on many devices/computer as possible while Microsoft may make it exclusive... they are well known for that
32. Evernox (unregistered) posted on 10 May 2011, 15:00 0 0
Microsoft well known for making thing's exclusive?
You're not talking about the Zune now are you? Windows is on almost every frking computer and the zune is so exclusive because no one wants it.
33. protozeloz posted on 10 May 2011, 16:41 0 0
well lets count
-no official windows live messenger
-no official outlook client
-no official office app
2. doubler86 posted on 09 May 2011, 08:17 4 0
I think that would be great. I only really see it hurting apple to be honest. Google will take a bigger lead at having the newest best smart phones for fully customizable users. Microsoft will now have a larger ability to take the most easy to use smartphones out there by far (seriously if you've ever used one they are just as easy at it gets). Then apple will just kinda be in the middle unless they finally do release a lower end iPhone as well. Either way I really think it would be a great Idea for there to be three big OS's because they will push each other to out due the other and we the customers would win. We've already seen it with Android and iOS, one more big one would just make it more competitive than two more lil ones that otherwise would be left behind.
13. jcoberg10 posted on 09 May 2011, 13:27 0 0
kinda like the carriers, at&t and vzw are sitting at the top just staying status quo not really pushing, but if a third jumped into the mix, it would be interesting to see what would happen.
3. E.J.Su posted on 09 May 2011, 08:23 1 2
MS, Nokia and RIM all of which are in decline, is this the best way to build your foundation?
15. remixfa posted on 09 May 2011, 14:10 3 0
technically MS is on its way back up. Windows phone 7 has sold much more than windows 6.xx. Add in the partnership with Nokia, and they have a huge world wide distribution partner. And if they buy blackberry, they have the bulk of the corperate world at their fingertips with blackberry's uber secure data sending services.
If MS cant come up with a competing solution for enterprise businesses, than i think it would be a great move strategically to buy up RIM if they continue to go down. If MS doesnt than Google should.
4. dandirk (unregistered) posted on 09 May 2011, 08:29 0 0
Not sure why MS would buy RIM. The only reason I can see is to get ahold of the BB network and enterprise BES product (which is hands down the best for the mobile management).
Even that seems a stretch given their platforms are soooo different.
The only other reason would just to get rid of a competitor, but I think RIM is doing a fine job of that by themselves.
5. Droid_X_Doug posted on 09 May 2011, 08:34 0 0
If MS has managed to sell a total of 600,000 WP7 handsets to date, they are going to have to do something. If you can't build market share, then with a big enough checkbook, you buy it.
Another potential acquirer of RIM would be HP. They have already acquired one former heavyweight (Palm), and RIM enhances their 'secure computing' focus.
6. protozeloz posted on 09 May 2011, 08:43 0 0
probably they will make a huge check.... that seems to be their strategy so far
8. jsonny (unregistered) posted on 09 May 2011, 09:39 0 0
stop spreading FUD. The 600K figure was what a russian dude came up with for 2010.
16. remixfa posted on 09 May 2011, 14:11 0 0
its been well more than 600k. And thats also only on Tmobile which didnt advertise it and ATT which noone goes to ATT unless they want an iphone.. lol.
21. Lucas777 posted on 09 May 2011, 17:17 0 0
its way more than 600,000 and anyways hp doesnt have enough money to buy rim after buying palm
7. Gcombs (unregistered) posted on 09 May 2011, 09:38 0 0
That would be big deal for Microsoft because they could add RIMS main features into there WP7 platform.
9. messiah posted on 09 May 2011, 09:56 2 0
Goodbye RIM ultra secret, secured, and locked down bbm servers.... hello trojans
10. snowgator posted on 09 May 2011, 10:22 1 0
Come on, this doesn't need to happen. RIM just needs to get aggressive and start developing products with a sense of urgency. They have the tools and capital to compete. Blackberry still is a respected name. Microsoft- go play with Nokia. RIM- wake up, see what is working for other companies, and keep your strengths.
11. Maxxx (unregistered) posted on 09 May 2011, 11:01 1 1
RIM is selling SOFTWARE, their hardware is CRAP
So if Microsoft wants to keep RIM`s software than it`s a GO...but i don`t think it will keep it
