Source: Tom's Guide | Keywords: RIM, Microsoft, Buyout | Themes: Business, Smartphones
With the global economy taking a beating, all companies stocks are dropping. However, scarier news is that Microsoft may be planning a RIM takeover bid.
The last couple have weeks have seen technology stocks plummet. Included in those companies have been the obvious names; Apple, Microsoft, Yahoo! and Google. Some were affected more than others, however, the takeover talk has been pretty quiet.
According to Reuters, Canadian cell phone manufacturer, Research In Motion, has seen stocks drop to $60, down from $148 four months ago. While a drop that sharp could spell takeover bid for any company, Reuters quotes analyst Peter Misek, from Canaccord Adams as saying for Microsoft, “"RIM is a massive strategic fit." Misek goes on to hint that Microsoft might be planning on purcahsing the company. "I’m fairly certain they have a standing offer to buy them at $50 (a share),” he said.
So at $60 a share, RIM won’t be ready to sell just yet. However, talk of the current financial situation indicates things are going to get worse before they get better, failing that, they’ll stay the way they are for a while. Should RIM’s stock fall any further and Microsoft makes an offer, we could see a MicroBerry before long.
Hands up who else gets that ’sweaty palms, sense of impending doom,’ feel from this deal?
Without a doubt RIM would be a goldmine for Microsoft. For a company that’s been trying to get a foot in the smartphone door for years now, RIM is a dream come true. It already has a reputation for high quality, reliable hardware and a userbase that’s nearly always willing to upgrade to the next handset they bring out.
Leaving aside RIM’s current push into the social-smartphone market, the general consensus is that BlackBerrys are for businessmen, not college students. Microsoft recently spent $300 million on an ad campaign to convince the consumer that there was more to Microsoft than a stiff in a suit. Acquiring BlackBerry would enhance Microsoft’s corporate reputation and boost business, but it would do nothing for the image it’s currently trying to create with either the off-beat, quirky Bill and Jerry commercials or the ads that show everyone from actors, designers and rappers to scientists, teachers and researchers using PCs.
As it stands, BlackBerrys are business, something that reputation-wise, is no use to Microsoft. However before the year is over, the most social BlackBerry to date will hit stores and RIM is hoping to turn its all-business reputation into a something that says work hard, have fun. If the company can pull this off, Microsoft would be insane not to make an aggressive bid for the Canadian company. That said, if RIM succeeds in creating a more social façade, the Storm would likely be the best contender to kick the iPhone off its high horse and RIM would be stupid to hand that away to someone else.
For anything to happen, RIM’s shares would need to drop below $50. Nothing is set in stone yet but we’ll be watching those stocks.
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Either that or Google will attempt to bid for them and replace the Berry OS with their abismal god forsakened Android OS...
I hope MS does buyout RIM just so I don't see a Google-Berry...
Well, there's really not anything that can make the Blackberry more garbage than it is already. I've gone through four, and I can say without a doubt that they are the greatest technological failure known to man. And I can't say I injected very much hyperbole in that statement.
Perhaps if the purchase happens, Blackberries will begin to suck a little less.
wow android hater over there...how can you not like android i just don't understand, maybe the physical handset but whats wrong with android as on OS...
@resonance451...mmm, yeah if they were that bad you would not have gone through 4 of them, something that bad would be blatantly obvious the first time.
crackberries are good
RIM getting bought by MS = crackberries will suck.
but maybe then Jim Balsillie will finally be able to buy the predators and move them to hamilton
lol
RIM's working on its own to move into the non-business market, the blackberry bold is only the first step. I doubt Microsoft would move in and buy them out, some sort of partnership maybe.
There's way too much going on for them to just drop down to the point where MS would move in. This company doesn't sit idle very long, they'll shoot back up there in no time.
"@resonance451...mmm, yeah if they were that bad you would not have gone through 4 of them, something that bad would be blatantly obvious the first time."
They were free replacements, two of which had to happen within the same day. Think before you post. Perhaps I hadn't explained all of the circumstances, but all replacements were due to defects and problems with the Blackberries, not user error or damage. After I realized I'd have no choice, I switched phones. Would it have been better for me to discount the phone for a single defect and then talk about how horrible it is? I decided to thoroughly investigate it instead.
I shouldn't need to cram everything down your throat. Maybe it would help if you operated less on pretenses.
Blackberry was already popular years ago. Microsoft could've brought them then when they are cheap.
Uh oh. If Microsoft buys RIM you'll see 25 different blackberry models that do slightly different things.
Blackberry XP, Blackberry Home, Blackberry Pro, Blackberry Home Ultimate Turbo Ultra.