Report: RIM Considering Selling Off Handset Division

Recent rumors say RIM is considering splitting its hardware division to focus on BlackBerry Messenger and BlackBerry Fusion.

It's no secret that BlackBerry maker Research In Motion has been struggling as of late. The company is betting big on BlackBerry 10, hoping that its newest mobile operating system will be enough to turn things around. However, if recent rumors are to be believed, the company is also thinking about other ways to give the company a boost.

This past weekend, reports emerged that RIM was considering splitting itself into two companies and selling its hardware division off to a third party. The rumors stem from a Sunday Times article (via CNet) published yesterday say RIM is considering separating its handset division from its messaging network and selling off its hardware business. The paper names both Facebook and Amazon as potential buyers for RIM's hardware division.

The Sunday Times didn't divulge its sources for this information and RIM told CNet that it had hired advisers to "examine several ways to leverage the BlackBerry platform through partnerships, licensing opportunities, and strategic business model alternatives." Canada's Globe and Mail writes that the idea of splitting the hardware and software divisions of RIM was first advanced by former RBC Dominion Securities analyst Mike Abramsky. However the paper later cites two former RIM executives as saying top managers do not currently take the idea seriously, and one said that “splitting the two would accomplish nothing."

BlackBerry 10 is due out later this year and was launched back in April. Based on QNX, which was acquired by RIM in 2010, the closed source operating system will bring RIM's smartphones closer to the BlackBerry PlayBook in terms of software.

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3

pacioli , June 26, 2012 3:21 AM

And who is going to buy it?
5

lamorpa , June 26, 2012 3:23 AM

I'll buy that for a dollar!
1

DRosencraft , June 26, 2012 3:32 AM

Can't call it a surprise. Everyone knows they've been struggling, and companies this big always start looking to split up and sell off parts of themselves when they get to this stage. I'm a little surprised there haven't been more rumors of this before now. It's a shame considering that RIM really helped the smartphone market get to where it is now, but it seems they just couldn't keep up or keep relevant enough to continue doing well.
0

dalethepcman , June 26, 2012 3:38 AM

Blackberry had so many chances to succeed, but failed to deliver when it counted the most. The torch (their only real touch phone) was so glitch ridden and the haptic feedback so terrible that no one wanted to use it. Their only hope for survival was to piggyback on Android's coat tails by allowing APK installations, but this didn't really work properly in the PB and until BB10 comes out its all up in the air.
-4

koga73 , June 26, 2012 3:44 AM

YES Facebook please by RIM... It will only help both companies die faster.
1

K2N hater , June 26, 2012 3:45 AM

Quote:
The Sunday Times didn't divulge its sources for this information

What if some competing company is the source?
-6

lamorpa , June 26, 2012 4:01 AM

koga73YES Facebook please by RIM...

bye?
0

sudz , June 26, 2012 4:28 AM

"the closed source operating system will bring RIM's smartphones closer to the BlackBerry PlayBook"

So in otherwords, they're not going to offer E-mail support until 9 months after release?
3

webbwbb , June 26, 2012 4:28 AM

lamorpabye?

buy?
-4

rex86 , June 26, 2012 4:46 AM

webbwbbbuy?

bye!
2

xjoedisorderx , June 26, 2012 4:54 AM

Wow not only is toms late to an article that holds no weight, but the isheep on the comments can't even make good jokes. First and foremost, a lot of apple people are "diy" "indie" and "occupy wall street" a$$es. These same people who want smaller government and free this and that, don't understand that competition helps drive prices down and make products better. The gaming industry has seen the less competition the less improvement on the products, aka Madden and MLB2k series.... so all of this negative garbage people are spewing that will actually be a huge step in the right direction is starting to get very old... BB10 looks phenomenal and the Playbook is mainly the only "computer" I use for my business and to play games and surf the internet. So please Toms and commenters keep up the good work and keep trashing the mobile ecosystem so we get a crappy watered down iOS and "linux" phone that has to many pokers in the fire to actually improve.... ps I run linux exclusively on my macbook and my hp laptops (just for anyone that thinks I'm trashing linux)...
0

Antimatter79 , June 26, 2012 8:25 AM

BlackBerry was always great for my email/sms/IM needs, but once I saw how people with other phones were actually doing fun things, and using cool apps, I started to feel behind the times, which is why I switched to Droid. Funny, I never was really a "phone" person until I switched. Before then, it was all business. If RIM had invested more in the "fun and cool" department, and had way more apps available that the consumer market wanted, then they would have had a fighting chance. I don't know why their attempts to gain traction have been so evolutionary, but they have certainly missed the bus at this point, and are running behind it, watching it pull off into the sunset.
0

alextheblue , June 26, 2012 8:36 AM

xjoedisorderxWow not only is toms late to an article that holds no weight, but the isheep on the comments can't even make good jokes. First and foremost, a lot of apple people are "diy" "indie" and "occupy wall street" a$$es. These same people who want smaller government and free this and that, don't understand that competition helps drive prices down and make products better. The gaming industry has seen the less competition the less improvement on the products, aka Madden and MLB2k series.... so all of this negative garbage people are spewing that will actually be a huge step in the right direction is starting to get very old... BB10 looks phenomenal and the Playbook is mainly the only "computer" I use for my business and to play games and surf the internet. So please Toms and commenters keep up the good work and keep trashing the mobile ecosystem so we get a crappy watered down iOS and "linux" phone that has to many pokers in the fire to actually improve.... ps I run linux exclusively on my macbook and my hp laptops (just for anyone that thinks I'm trashing linux)...
First of all, "occupy wall street" types don't want smaller government. They want more (bigger) government, with its fingers in every faucet of life and business. A desire for larger government also goes hand in hand with wanting free stuff (entitlements) too. Second, Madden doesn't compete with MLB2K, since MLB is Major League Baseball. NFL2K, on the other hand, DOES compete with Madden. You could have just said "2K Sports" instead, though.

Anyway, while I agree to some extent with your sentiment regarding competition, there's a couple of things to keep in mind. BlackBerry is not really competition at this point, for anyone - and it's their own fault. They've fallen so far behind, and have released many products which are underwhelming at best (barely better than a dumbphone), and downright flawed and problematic at worst. Why would we prop them up if they can't stand on their own two feet? They had huge marketshare, and they sat on their laurels while others marched on steadily. They refused to see the market was changing, and when they finally did, they couldn't adapt quickly enough.

I wish them the best of luck with BB 10. If that doesn't work, they should build Android 4.x and WP8 devices equipped with BB-exclusive apps. I would consider buying one.
0

anonymous@guest , June 26, 2012 9:05 AM

BB had it coming, sadly. As a previous supporter of BB, I enjoyed the original BB Storm. Even as the iPhone 3 took off, I clung to my Storm. But then Storm2 was a disappointment, and we kept holding our breath for a miracle and Storm3, but that never materialized. By then, BB failed to respond to user requests, failed to recognize the threat that was iPhone and Android. When I finally jumped ship to the iPhone 4, I never looked back.

It's not that I wish ill on BB, it's that I felt they never really cared about their users, user feedback, or reading the market or their competition. Instead, they stuck their heads in the sand, and much like the fable of the Emperor's New Clothes they kept believing that they were unrivaled and unfailable. By the time they got new CEOs, it was too late.
0

ashinms , June 26, 2012 9:10 AM

I'm calling FUD on this one...
0

AndrewMD , June 26, 2012 10:53 AM

Microsoft could use this for an advantage if they decide to buy out RIM entirely, just like they did with Danger (Sidekick)
1

QEFX , June 26, 2012 11:11 AM

I'm wondering if the b2b corps would be interested in BB's phone division. Just imagining Oracle or Cisco. They could bundle (and optimize) the phones with the rest of the hardware / software. Strange thoughts, but it would be interesting.
0

southernshark , June 26, 2012 4:12 PM

I actually the BB torch a lot. But I don't do a lot of "smart" phone things. I'm not into running apps on my phone. The BB is still the best IMO for checking email and status updates and for typing messages on the hard keyboard (don't like virtual ones). But I'm one of the few you don't use their phone for anything except phone stuff and email.
0

ashinms , June 26, 2012 5:34 PM

I don't know about southernshark, but I DO use my torch for "smartphone stuff" (I am right now by writing this).
1

belardo , June 26, 2012 7:15 PM

"First of all, "occupy wall street" types don't want smaller government. They want more (bigger) government, with its fingers in every faucet of life and business."

No, zombie. Occupy wants Wall Street OUT of our govt. Business have no business in our govt.

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Report: RIM Considering Selling Off Handset Division

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