RIM thinking of splitting into two firms

RIM thinking of splitting into two firms
According to Reuters and The Sunday Times, RIM is considering a major restructuring that would split the company into two parts. One part would feature the long-suffering handset manufacturing business while the other would contain RIM's popular messaging service. Once the split is accomplished, RIM would then consider selling the manufacturing half, according to The Sunday Times. Last month, RIM hired investment banking firms JP Morgan and RBC Capital to go over strategic options. Names mentioned as potential buyers include Microsoft and Facebook.

There is speculation that RIM might want to also part ways with its messaging business, or open it up to rivals like Apple and Google as a way to generate income. Another option being kicked around would be to keep the entire company together, but to sell a stake in the whole company to a bigger tech firm like Microsoft. RIM has seen its once huge global smartphone market share decline into single digits, dropping from the 13.6% of the market it commanded in the first quarter of 2011 to the 6.7% slice of the global smartphone that the Canadian based manufacturer owned in this year's Q1.

At the end of last year, word had leaked out that Amazon,Microsoft and Nokia had considered buying RIM with Amazon the most serious of the trio. RIM is expected to launch its new BlackBerry 10 OS later this year in an attempt to catch up to iOS and Android. Even RIM's one time domination of the enterprise has vanished leaving the company hopeful that its new OS will turn things around. But with the stock at an 8 year low recently, rumors of a takeover are going to continue until the stock is finally bought out, turns the corner, or files Chapter 11.

source: Reuters


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17 Comments

1. jove39

Posts: 2146; Member since: Oct 18, 2011

May be BB should opensource their OS and let dev community enhance it. Amazon...hmmm...controlling entire digital distribution chain through kindle line of products...that'll be nice!

2. plgladio

Posts: 314; Member since: Dec 05, 2011

Every OS once slip from top, its all about how smart they pick-up. BlackBerry still hoping a gain..

3. Synack

Posts: 688; Member since: Jul 05, 2011

RIM sucks

8. Synack

Posts: 688; Member since: Jul 05, 2011

lol for the 2 thumbs downs from Blackberry owners who think their phone is God, when it is crap. Join the rest of us in Android/iOS/Windows Phone.

10. a_tumiwa

Posts: 393; Member since: Mar 16, 2012

hey! u didnt mention my Symbian!

11. Wiki_jaan

Posts: 704; Member since: Jun 24, 2012

symbian already dead :p

13. Vaidya

Posts: 11; Member since: Jun 20, 2012

I wasn't dead but nokia killed it . Just a ui and store upgrade would have gone a long way. Same thing for meego.

16. digicon

Posts: 121; Member since: Aug 11, 2011

Naw , it just shows all the people who have jumped on the Baa-aa-ndwagon . . .

4. parkwaydr

Posts: 572; Member since: Sep 07, 2011

What they need to do is start marketing bb 10, get people excited, the sooner they start the hype the better. No one is going to buy it if they don't know about it.

5. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

I see it happening. Dumb & Dumber

6. GuiltyBystander

Posts: 199; Member since: Mar 05, 2012

Without Jim Carrey :(

7. residualhatred

Posts: 25; Member since: May 28, 2012

All they need in their hand is a white flag to wave. RIM has not put up much of a fight. They got punk'd by Apple and Google. My wife still loves her blackberry. But she even knows eventually she will have to jump ship and get either an iphone or android phone or even a windows phone.

9. MISTER-H

Posts: 87; Member since: May 28, 2012

Good bye RIM...... Ur phones are crap and low specs....

12. OptimusOne

Posts: 694; Member since: May 22, 2012

better than iphone...

14. Vaidya

Posts: 11; Member since: Jun 20, 2012

Copying moto's strategy except apple and google it has potential buyers

15. snowgator

Posts: 3621; Member since: Jan 19, 2011

Geez, another set of BB rumors. There is no way RIM splits in two. And no way they lose their corporate business. And no way they need to change from their Bold-style keyboard. And no way BB07 won't keep them afloat until their BB10 launches. And no way the Playbook won't find an audience. Ya know, that split in two idea ain't bad...

17. mercorp

Posts: 1045; Member since: Jan 28, 2012

Spilt into two.... BANANA.

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