RIM denies Jekyl and Hyde solution to its woes

RIM denies Jekyl and Hyde solution to its woes
Over the weekend, we told you about the growing speculation that RIM would divide itself into two parts, one focusing on manufacturing handsets and the other centered around its popular messaging system. The idea would be to make the company more easily digestible for possible suitors like Amazon, Microsoft or Nokia, allowing a potential buyer to focus on the part of the company it is interested in. Stockholders would have paper in not one, but two companies. One would be a slower growth hardware manufacturer while the other would be involved in the fast growing software and network business. But RIM fans who were hoping to see the old gal sawed in two might as well turn away as there is nothing to see here.

The hardware side of RIM accounts for 80% of company revenues, but the problems that RIM is having in this area are taking attention away from the services side of the company as many corporations and governments rely on BlackBerry for secure messaging. Splitting the company in two would be a way to unlock the value of that part of the business for investors, who have seen the value of RIM shares drop from $140 to less than $10 over the last few years.

People close to RIM told the Globe and Mail that RIM has no plans to divide itself in two and those sources close to the Canadian company call the idea "A silly fantasy," and "one of the most ridiculous I have heard in a while." RIM spokesman Nick Manning said that the company is focusing on turning itself around as an integrated firm with the release of new devices in the months ahead. Two former RIM executives  are saying that the powers that be at RIM do not take seriously the idea of splitting up the company. The Globe and Mail says that current RIM CEO Thorsten Heins is committed to the turnaround plan as is former co-CEO Mike Lazaridis.

source: GlobeandMail via Forbes

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9 Comments

1. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

lol I love the picture! I think the only way RIM will survive is if it licenses it's awesome enterprise service. I would love Android to be able to have RIM's Enterprise service software.

8. snowgator

Posts: 3621; Member since: Jan 19, 2011

SAE- they could make millions that way. All the current OS's would benefit, and users would spend extra to get it. You got my vote, buddy!! Run for CEO!! Here it has a great severance package.

9. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Yes my Father is one of the VP's of RSG Media in NYC & we always talk about RIM's future. Both he & I believe that is the way to go for RIM. My old man says he will never stop buying RIM phones because of RIM's Enterprise Service software. He is constantly traveling in Europe & India. He needs to be connected to his email 24/7. That is the beauty of Black Berry, no other email client can come close to RIM’s tech on that front. He says once RIM's licenses their software he will leave & get an Android or maybe even one of the new WP8 that are coming out.

2. Kan_wha

Posts: 88; Member since: Jun 25, 2012

"RIM CEO Heins is committed to turning the company around" Yup, "turning it around" and then nose diving em straight to the ground...

3. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

Personally, I fully support RIM and can't wait for their next major release; I am looking forward to a new and upgraded 2" LCD with 256MB of RAM under the hood, along with the newly redesigned Qwerty keyboard. I am also looking forward to all the new features of Blackberry 6, including Blackberry Messenger with the newly integrated 0.30 pixel Front Facing Camera (left over from another manufacturer). Bring it on RIM, pleeeeeze'.

4. Kan_wha

Posts: 88; Member since: Jun 25, 2012

I wouldn't get my hopes up if I were you man, RIM doesn't have the greatest track record of actually listening to the people.

5. LostInTheRed

Posts: 85; Member since: May 03, 2012

Sacastic reply is sarcastic. ^.^

6. Femto

Posts: 61; Member since: Mar 21, 2012

Haha! Well played, sir! I actually used to love my trusty Curve from years ago. However, as it aged I'd look forward to see what RIM would release to keep up with the competition. To my disappointment they would release garbage with specs like Papi just described. Used to be a let-down. Now it's just funny :) I have to admit that there is still a place in my heart for BerryBuzz and that multicolor LED. I look forward to seeing their next line, but I am short-selling their stock regardless.

7. Kan_wha

Posts: 88; Member since: Jun 25, 2012

2" LCD and Blackberry 6? Pfft, more like 1.5 and BB5

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