Microsoft may be looking to invest $3.5B in RIM

Microsoft may be looking to invest $3.5B in RIM
It's time for the monthly rumor that some giant tech company is going to buy out/invest in RIM. This time the lucky company would be Microsoft, which is now being reported to be interested in investing up to $3.5 billion in the failing Canadian company. Color us very skeptical. 

Financial site Benzinga has said that Microsoft may be interested in making a $3.5 billion investment in RIM. This would be an investment worth more than half of RIM as a whole, which currently has a market cap of $6.85B. If the deal goes through, it would seem likely that Microsoft would acquire a controlling interest in RIM. 

The problem is: why in the world would Microsoft do this? RIM is in a free-fall right now. The company is losing a lot of money, executives are jumping ship, and the company doesn't really have much by way of valuable assets. Microsoft has no need for a hardware department that is losing money, nor does Microsoft need any of the software made by RIM with the possible exception of BBM, which is not worth nearly that much money. It's possible that Microsoft would want to buy up some of RIM's patent portfolio, and it's likely that RIM does own some valuable patents, but $3.5 billion still seems like a pretty steep price. 

We could certainly believe that Thorsten Heins made a call to Microsoft inquiring about an investment like this, but it doesn't make a whole lot of sense from the Microsoft side of the equation. 

source: Benzinga via WMPU

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23 Comments

1. tuminatr

Posts: 1116; Member since: Feb 23, 2009

wow someone play the death march!!

7. messiah

Posts: 438; Member since: Feb 19, 2010

to get the patent on and control the secret servers for the elusive and overy protected BBM (minus the ALN, of course) is more than valuable enough to get ahold of... there would be no other reason i'm surprized google or apple didnt bid just to get the patent on bbm servers and coding (compression).

8. PeaceofLead

Posts: 2; Member since: Apr 11, 2012

Oh yeah messiah brings up a good point. The U.S. government would end up using WP7 if it had blackberry security and their was no blackberry.

9. nyamo

Posts: 274; Member since: Mar 19, 2011

That was my first thought. I'm sure rim has some sort if patents on device encryption

2. rockstarlive

Posts: 307; Member since: Oct 19, 2011

Lol BlackBerry .....

3. downphoenix

Posts: 3165; Member since: Jun 19, 2010

If Instagram is worth $1 billion (which we know its probalby not even worth 1/10th that) then $3.5 billion for a controlling stake of RIM seems like a bargain to me.

4. babyk

Posts: 379; Member since: Nov 03, 2011

damn another rescue thats what it looks like. Microsoft rescue rim like IAG got rescued sometime ago

10. bovcrx

Posts: 105; Member since: Mar 06, 2012

Like when MS came to the rescue for Apple.

11. baqaw

Posts: 2; Member since: Apr 11, 2012

Most people bash Microsoft, but they didn't know that MS is one of the 145 most ethical companies of the world. Apple and Google are not even in the list. MS always comes to rescue those who are down, and haters don't give credit to that. Apple would have been bankrupt long time ago.

5. speckledapple

Posts: 902; Member since: Sep 29, 2011

I think its possible as that is likely the only kind of price that would be able to put forth to make this even an idea. The reason is simple, Canada will not likely allow one of their most valuable companies to be taken so easily with a small figure. Furthermore, if its just an investment, which is possible as its a way to start an eventual takeover down the line, Microsoft has made a similar move with Nokia and its paying off great for them for now. RIM has a completely different culture so I do not expect them to adopt Microsoft software and services right away but integration would bring Microsoft more bucks in the short term while growing a larger software base in the long term. So, as I said, its possible though i wish it was true.

6. PeaceofLead

Posts: 2; Member since: Apr 11, 2012

Microsoft would do this for the same reason Google bought Motorola. Patents. RIM has a lot of them though they have not been waging war with the others. Microsoft could use those patents for suing and improving WP7

12. pongkie

Posts: 663; Member since: Aug 20, 2011

nicki minaj is still safe for WP endorsement I guess LOL

21. cocote177

Posts: 21; Member since: Apr 12, 2012

LOL :D

13. gwuhua1984

Posts: 1237; Member since: Mar 06, 2012

RIM and Microsoft.... now that's an interesting combination...

14. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

This might be interesting to see actually. Window 8 is basically window 7 desktop OS with an UI. Good amount of businessmen are using Blackberry. If they can somehow combine those two, it would be a businessman's dream.

15. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

I am still waiting for a compelling reason or MS to drop $3.5 billion on RIM. If there is one, wait a few months and they could get the whole enchilada. And for less than $3.5 billion.

16. eaxvac

Posts: 328; Member since: Jan 15, 2012

Oh yeah, here comes the purchase of sinking Titanic.

17. snowgator

Posts: 3617; Member since: Jan 19, 2011

We need a Phone Arena wager pool. Who buys or bails out RIM, how much, and when. Winner gets my old BlackBerry Curve, which is in a drawer somewhere......

18. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

What if no one buys or bails out RIM? They could re-organize into a much smaller software-centric company.... There are some indications that this is where they are headed.

19. Glim12808

Posts: 394; Member since: Oct 26, 2011

Just like Michael H., I also can't see what MS would get from RIM when it already has Nokia for a partner. If MS helps RIM, it would be similar to the help MS extended to Apple. At that time, MS did not need Apple at all yet the help was extended. Maybe help would be extended to RIM in the same light. If it happens at all, I know that Microsoft would get a lot of GOODWILL for it! Maybe that would be worth $3.5B.

20. atheisticemetic

Posts: 377; Member since: Dec 18, 2011

I was never a big fan of Blackberry, but one thing is for sure. They have amazing email capability for business. If Microsoft invested in them for the one thing they were good for, they could potentially dominate the business market. IMO this isnt an awful investment at all. (perhaps a little much? 3.5B??) Blackberry is the new Sega....simply a name

22. cdgoin

Posts: 614; Member since: Jul 28, 2010

It makes perfect sense.. BlackBerries are seen as a "form factor" as much as a Service. So if you add BBM to WP, wrapped in a Blackberry style phone (Like the Dell Venue Pro) and all of a sudden MS gets back thier "Business User" creed in spades.. Nokia would be the side of MS making and innovating the Consumer side of the WP market.. BUT with BBM built it. This could be a BIG, and give MS a leg up and an advantage over iOS and Android.

23. moehj

Posts: 3; Member since: Dec 27, 2011

why not!! windows phone + BBM integration!!

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