Goldman Sachs is thought to have been hired by the BlackBerry maker to field potential buyout bids. Do you think sell-off is likely soon ? Which companies do you think will be more interested in buying RIM ?
The company's sharea are surging on the news Research in Motion hired Goldman Sachs. The stock rose more than 10 percent today. The market probably expects a sale, merger or strategic partnership.
Research in Motion, only days after it hired Goldman Sachs to field potential buyout bids, is looking to Samsung as a potential buyer of its BlackBerry smartphone and tablet range. Samsung and RIM looks like interesting merger if it happens.
Samsung has reportedly denied being interested in buying RIM. I am not sure of any significant competitive advantage Samsung will gain by buying RIM. See the story here: (Samsung: We never considered buying RIM -- and never will).
Clairvoyant, Buying RIM will only sustain a rival to Google's Android. It's unlikely. Google agreed to buy Motorola Mobility because the company was already using Android and it needed to get its hands on Motorola Mobility's patent hoard for its fight against Apple.
That might be one reason for Google, Samsung or Nokia to go after RIM -- that is, the patents. However, news reports indicate Samsung is not interested. I will also rule out Nokia -- It can't afford it. Which leaves Google, again, but even that is unlikely.
RIM might be in more trouble if it cannot attract buyers.
I can't see what Google would do with RIM under it's thumb. Maybe just a spinoff of what they already are with some Android flavor. But would that even work??
But how? There platforms are so different as well as the devices that the OSs run on. How will they maximize that with the portfolio they already have?
I dont have a clue as such on how to change and the pocess and all but I guess Google does have. They should if not because they ae the leading search engine and they have a big responsibility on their hands.
They have actually made a good amount of acquisitions this year, just not to the caliber of Instagram. But I'm sure they will be valuable assets in their portfolio.
Do you foresee that happens? For me, Google's business strategy is obviously on different aspect but RIM's surviving BBM as well, tightly manned and managed integrated security application may be tempting, that is apparently lacking in Android software.
I think surviving is the key phrase there. I think that within the next few years, if things progress the way they are now, BB will be phased out of the corporate environment. The technology will probably still be around, just not branded as RIM.
Which market segments do they have strenght in depth? I think smarphone market success has been recorded high from the consumers - teenagers, school children etc.
If I understand your question correctly, they had strength in the business environment 1st, then the trend trickled down to younger crowds. Now, the younger crowds are the real consumers. I doubt that was how they planned their strategy.
Recent rumors are about possible RIM acquisition by IBM; after all, they have played a pivotal role in the enterprise market segment, I personally believe your "hook" is not really bad.
I think both IBM and RIM would form perfect union. They both have symmetric business strategies - end2end security, and that would probably re-position IBM in consumer market segment, the opposite side is, RIM would get its feet rooted in enterprise.
IBM just won a massive years of contract with one of the leading telecom services providers in West Africa. I learned IBM has already commenced services in this aspect - providing smsc and mcommerce for some Africa nations. As a result IBM needs messaging and email servers desperately to deploy to those sites. So RIM's messaging server would also help rather than IBM producing new PCs, i think.
Yes, I agree, definitely. I am convinved those talks raised once IBM has won contracts you have mentioned. Speaking for myself, it could be a good possibility for recovering RIM status in terms of business profit and for creating a complementary merge or joint-venture.
They make a good team, indeed... Maybe IBM can integrate that mobile experience into their enterprise solutions. Maybe forget about the actual hardware/device but focus on delivering software, maybe an app.
@Mr Rogues, time will tell though. I think IBM might wants to reduce its reliance on hardware production otherwise it wouldnt have been considering RIM acquisition.
@Clairvoyant, until something positive happens to the Canadian based smartphone maker. Although, Goldman Sachs help would only materialised through M& A, and i dont see any strategy other than that. Are you expecting new innovations from that perspective?
Goldman Sachs is not the solution to Research in Motion's problem. It will take more than a financial advisor to solve the problems facing the company. Goldman Sachs will probably focus on a break-up of the company.
RIM has to find a technology solutions to end its financial woes. I think GS can help RIM find either a financial suitor or breakup plan to save some Dollars in long term. But the problem remains.
I doubt Google wants to buy out their competition, they are beating it for free. Patent-wars, sadly, is always a topic and might be the best reason to buy RIM.
RIM, to me, is too big to change and will probably stop being a global player and go back to playing a role in high-security applications.
After Andriod, Apple OS and Windows being the only dominant software platform, doesn't it make sense for RIM to have strategic parternship with a software company and focus on the hardware alone. Maybe after Nokia, Microsoft might be interested.
@Rich, am wondering on the amount of sacrifice ritualists would perform to turn things around. Am afraid, is getting too late coupled with dynamism of the business' service designs and transitions.
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