RIM thinking of splitting into two firms - PhoneArena

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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