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RIM sells NewBay for a loss to make some quick cash

Posted: , by Michael H.

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RIM sells NewBay for a loss to make some quick cash
It's unclear exactly why RIM wants to pull in some quick cash, but the timing is pretty suspicious, and a bit disconcerting too. Word came out on Friday that RIM has decided to sell off NewBay at a loss, even though RIM just purchased the company back in October of last year. The timing of this is suspicious because RIM was also just hit with a $65 million dollar bill from Nokia for patent infringement.

RIM sold NewBay and its assets to Synchronoss Technologies for $55.5 million in cash, which would help to pay that bill. The news is somewhat disconcerting because of the timing, how short of a time that RIM had NewBay, and the fact that RIM originally paid $100 million for the company, but also because NewBay could have been a pretty useful acquisition for RIM had it held on. 

NewBay’s cloud software enables a number of features that are big across content stores and competing plaforms such as storing, sharing, and accessing media content across connected devices such as smartphones, tablets, PCs and TVs, and delivering user content services such as social networking, digital vault, photo and video albums, network address book, notification, and converged messaging services. Basically, NewBay helps to offer features that have become standard in Google Play, iCloud, and even Windows Phone. So, we're hoping RIM has other solutions lined up. 

source: MarketWatch via BGR

12 Comments
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posted on 30 Dec 2012, 17:19 4

1. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


Too bad RIM couldn't use the 55½ mil' to overhaul their geriatric hardware and their handicapped software.

posted on 30 Dec 2012, 17:45 8

2. MichaelHeller (Posts: 2681; Member since: 26 May 2011)


Doesn't really make sense to say that a month before the BB10 release.

posted on 30 Dec 2012, 18:46 6

3. fanboy1974 (Posts: 1244; Member since: 12 Nov 2011)


BB10 will be a huge failure. We already have 2 proven platforms and 1 that's good enough for third. I actually see a lot of those fancy BB10 features ending up as third party addons within Android.
Rim will be fighting for scraps with Microsoft in 2013. Let's be serious here.

posted on 30 Dec 2012, 19:04 2

4. Ravail (Posts: 182; Member since: 14 Oct 2011)


Lol id have to agree, RIM is a dying company.

posted on 30 Dec 2012, 21:03 2

6. Mxyzptlk (Posts: 3759; Member since: 21 Apr 2012)


That ship sunk a long time ago. I don't think there's any hope left for them other than a buyout.

posted on 30 Dec 2012, 19:13 2

5. Droid_X_Doug (Posts: 5876; Member since: 22 Dec 2010)


Income statements don't accommodate product launches. If there was a concern about cash requirements impacting the product launch, that is poor planning on the part of RIM financial executives.

posted on 30 Dec 2012, 21:04

7. Mxyzptlk (Posts: 3759; Member since: 21 Apr 2012)


Michael I'm fairly sure even you can agree that hope is lost for RIM. They've missed the ball too many times and now it's over.

posted on 30 Dec 2012, 21:18 1

8. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


But Michael, [really now], how many times has RIM supposedly been releasing the ever-gloriously absent BB10 devices? Why, I can't even count the number of times using my 10 'wittle toes.
Call me a pessimist but, even if it does get released [in 2013], it will be a relative failure compared to Generation Y's precious iPhone or Generations X, Z, "Boomers" and Golden Gen', respectively, all preferring Samsung. Notwithstanding the aforementioned, they still have three other manufacturers ahead of them. The only fight Blackberry seems to be winning right now is staying slightly ahead of Nokia [for last place]. One can not deny that in the past 5 years most manufacturers have done their best to remain competitive and current in a fast-changing industry except, of course, for BlackBerry; now they must play catch-up, even to the likes of LG.
And, even if they garner the most minimal of measured success with any new devices, it will be far from what they actually need at this point to recover any semblance of relevance.

posted on 30 Dec 2012, 22:20 1

9. Bernoulli (Posts: 1451; Member since: 01 Sep 2012)


We all use drop box so it's not that big of a deal really guys

posted on 30 Dec 2012, 23:30

10. JGuinan007 (Posts: 634; Member since: 19 May 2011)


I don't think Rim is even trying to compete in the 1st world market and is trying to keep hold in 3rd world Markets like Africa and South America the only places I know of where people still make a big deal about having a black berry

posted on 31 Dec 2012, 11:32

11. iCandy (Posts: 46; Member since: 07 Dec 2011)


Not a bad deal if they have secured an agreement for NewBay to provide BB10 with a Cloud service. Its a service that will be mandatory for all future MIDs, but it is not truly necessary for it to be developed and provided by the device manufacturer.

posted on 31 Dec 2012, 12:41

12. downphoenix (Posts: 2359; Member since: 19 Jun 2010)


A bit suspect perhaps, but RIM probably doesn't need them anymore either, why not sell them off and use the cash for advertising the new platform?

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