& cplSiteName &

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        ADD A COMMENT
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.
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
The Real-World View of Service Provider Innovation
Executives from Deutsch Telekom, Facebook, AT&T, Vodafone, and Masergy share insights from their company’s major transformation efforts and updates on key issues including open source, managed cloud connections and 5G.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
LRTV Huawei Video Resource Center
European 2020 Digital Agenda

5|12|16   |     |   (0) comments


Anacom's Fatima Barros discusses the plan to bring ultrafast broadband to Portugal by 2020.
Upcoming Live Events
May 24-25, 2016, Austin Convention Center, Austin, TX
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Nokia Plays It Smart With Major Mobile Devices Brand Deal
Iain Morris, News Editor, 5/18/2016
Ingenu Revs Up IoT Rhetoric
Iain Morris, News Editor, 5/18/2016
Google Doubles Down on Machine Learning, AI
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/19/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.