Light Reading
RIM's stock price drop may be making its larger rival interested in a takeover

Microsoft Rumored to Be Eyeing RIM

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
10/13/2008
50%
50%

Microsoft Corp. (Nasdaq: MSFT)'s rumored interest in acquiring BlackBerry would instantly give the software giant a larger share in the consumer and enterprise smartphone market, while bringing in technology that could help stave off new challengers in the market, such as Apple Inc. (Nasdaq: AAPL) and Google (Nasdaq: GOOG).

Rumors of a Microsoft takeover are linked to the precipitous fall in the Canadian device maker's share price over the last few months. The company's shares stood at nearly $150 during the summer but have been forced down by the global financial crisis and fears of the effect that could have on RIM's business.

The speculation boosted RIM's shares for the day, up $8.59, or 15.54 percent, to $63.87.

Reuters quoted Canaccord Adams Inc. analyst Peter Misek saying that Microsoft could make a $28 billion bid for the firm if the stock prices continue to fall. "I'm fairly certain they have a standing offer to buy them at $50 [a share]," the analyst reportedly said.

"You can't completely dismiss rumors like this," suggests Carmi Levy at AR Communications Inc. "Certainly the crash in RIM's share value has made them a more attractive target."

He suggests that such an acquisition may be a better strategic fit than the much-ballyhooed Microsoft/Yahoo Inc. (Nasdaq: YHOO) deal. "Microsoft does not have an iPhone-killer strategy. It does not have a Google Android strategy. Buying RIM would give them that."

Nokia Corp. (NYSE: NOK) is still No. 1 in the global smartphone market with more than 40 percent share. RIM stands at No. 2 with more than 13 percent, while Apple comes in third with more than 5 percent of the market.

Levy suggests that -- particularly in North America -- Nokia has failed to capitalize on its leading position with new smartphone models. Thus, in the U.S., market share tussles are among RIM, Apple, and devices based on Microsoft's Windows platform.

Google is the unknown factor, although interest in its initial Android-based phone, the High Tech Computer Corp. (HTC) (Taiwan: 2498) G1, suggests it could be a strong seller when launched later this month.

Meanwhile, Levy cautions that some of these Microsoft rumors have been floating around RIM for a while. "Certainly we heard it in August last year, when the shares were around $90 each."

Even the possibility of Cisco Systems Inc. (Nasdaq: CSCO) taking a stake in RIM traveled the rumor mill last month, although that has been largely dismissed by industry watchers. "I just couldn't wrap my head around that one," Levy comments.

RIM and Microsoft haven't yet replied to calls about the M&A talk.

— Dan Jones, Site Editor, Unstrung

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
gbmorrison
50%
50%
gbmorrison,
User Rank: Light Beer
12/5/2012 | 3:29:37 PM
re: Microsoft Rumored to Be Eyeing RIM
Nonsense. This is wishful thinking by traders that want to prop up their RIM positions.
Flash Poll
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Glimpsing the Self-Driving Car
Dan Jones, Mobile Editor, 9/12/2014
AT&T to Launch WiFi Calling in 2015
Sarah Reedy, Senior Editor, 9/12/2014
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Like Us on Facebook
Twitter Feed