backtop


Print 22 comment(s) - last by retrospooty.. on Jun 27 at 2:07 PM

Alternative plan would sell a stake to a large company like Microsoft

Embattled Research in Motion, Ltd. (TSE:RIM) CEO Thorsten Heins has expressed openness to "strategic business model alternatives", commentary which some believe hints at a sale.  RIM retained help to explore its options -- the Royal Bank of Canada (TSE:RY) and JPMorgan Chase & Comp. (JPM).

Now The Sunday Times, a top United Kingdom weekly owned by News Corp. (NWS), is claiming that RIM is considering a proposal from its bank advisors to split itself in two.  One company will be composed of RIM's services, which include BlackBerry Messaging (BBM), BlackBerry Internet Service (BIS), and BlackBerry Enterprise Servers (BES).  The other company would be RIM's handset business and potentially certain patents.

The latter company would be put on the auction block.  Potential buyers are thought to be Amazon.com, Inc. (AMZN) whose tablet success might embolden it for a handset dip, or Facebook, Inc. (FB) who is reportedly eyeing a handset plunge to boost revenues.

BlackBerry sales
RIM is reportedly considering selling its handset business.
[Image Source: Christian Science Monitor]

The services company could also be sold, if interested bidders were found.

So far RIM has only publicly received a handful of seemingly sarcastic offers, such as one rapper's proposal to buy it.  But RIM's industry leading physical keyboards, brand recognition, and experienced staff could be make the company's handset division a tempting "fixer-upper" for an ambitious firm.

According to The Sunday Times, a second alternative plan from the advising firms would be to sell a large market share to a company like Microsoft Corp. (MSFT).

RIM is coming up on its fiscal Q1 earnings, which will be revealed on June 28th.  CEO Heins says his firm will "likely have an operating loss", following a similar loss las quarter.  Unsold handsets are piling up and RIM has begun to lay off a large chunk of its global workforce -- in short, time may be running out to preserve shareholder value in the struggling firm.

Source: The Sunday Times



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

WTF?
By Zingam on 6/25/2012 7:42:47 AM , Rating: 1
I don't get it?!! Why everybody wants to destroy RIM maybe the last independent company?
So do Apple and Microsoft pay so well to reporters etc. to write off any competition???
I am sad enough that Nokia went the Microsoft way and that it might disintegrate as a result.

The only real problem I can see with RIM is really bad management that is unable to create a positive image of the company and its products.

I don't know about iPhone 4s but iPhone 4 is pure crap. In our family we have used phones by different manufactures for 10 years and the only one to fail within a year was the iPhone 4. Nokia's phones continue to work even after dropped in a toilet or washed in a washing machine.
And the quality of Microsoft designs and products doesn't need to be commented it is too embarrassing.




RE: WTF?
By retrospooty on 6/25/2012 8:24:21 AM , Rating: 5
"I don't get it?!! Why everybody wants to destroy RIM maybe the last independent company?"

Who wants to destroy RIM? RIM's only issue at all for the past 5 years is that it is destroying itself with piss poor management. I dont think anyone wants them out of the market (Other than Apple MS, Google and stockholders).


RE: WTF?
By amanojaku on 6/25/2012 9:30:49 AM , Rating: 2
Truth. RIM's new strategy is the perfect example of self-destruction. Split the company? What good will that do? The software won't sell without the hardware, and RIM wants to get rid of the hardware. No admin is going to buy BES just to hook it to Android and iOS. Users don't want BIS or BBM because they've never heard of them, and don't need them.

BB only worked as a whole ecosystem for a specific environment. It should remain that way, while adding support for 3rd party handsets on BES, BIS and BBM. This way, a company can insist that for the most security (doctor, banker, lawyer, POTUS, etc...) an employee must use a BB connected to BES. For normal security your own phone is fine, as long as it has the secure BBM and BIS apps when connecting to company resources.


RE: WTF?
By Samus on 6/25/2012 10:31:13 AM , Rating: 2
RIM's downfall has been failure to adapt. They've been in limbo for over 5 years. Their products literally haven't changed. They keep smacking on new OS versions like Mozilla does to Firefox, without really changing anything. The biggest innovation to the Bold has been a touchscreen (which, at 3", is quite useless) and their form factors and back-end "BES" are antiquated. Their whole data delivery system is antiquated.

It's sad to see good products die, but RIM hasn't made good products since 2007.


RE: WTF?
By retrospooty on 6/25/2012 10:34:46 AM , Rating: 2
Yup. Sitting on their laurels for far too long got them here. I remember Lazardis being quoted when talking about the iPhone and Android's touch screen UI several years ago as saying "Our customers dont want that". LOL. OK, nice move buddy.


RE: WTF?
By amanojaku on 6/25/2012 10:40:50 AM , Rating: 2
Very true. Curious to see if they finally address some of this with the L and N-series phones.

The touchscreen Bold was blech. The 9650 was an excellent telephone, but its tiny size and anemic performance made it unusable as a smartphone.


RE: WTF?
By Tony Swash on 6/25/2012 9:53:08 AM , Rating: 2
quote:
The only real problem I can see with RIM is really bad management that is unable to create a positive image of the company and its products.


You have put the cart before the horse. The problem with RIM products is not image it is actuality. RIM's handsets are perfect for yesterday's market not today's and certainly not tomorrow's. RIM now has no strategy for developing a competitive smart phone offering and no realistic hope of remaining a profitable player in the smart phone market. An indicator of how badly RIM went wrong is that it's best hope now is to be bought by Microsoft, some fate.

Re your comments about the relative merits of RIM and iPhone handsets, it appears from the evidence that yours is an unrepresentative experience.

http://thenextweb.com/apple/2012/03/16/apple-tops-...


RE: WTF?
By retrospooty on 6/25/2012 10:21:48 AM , Rating: 2
"RIM now has no strategy for developing a competitive smart phone offering and no realistic hope of remaining a profitable player in the smart phone market."

Exactly... Partnering up with QNX and later buying the OS and then not being able to release a phone on it for 2 1/2 years is not going to get it done regardless of how good QNX is. You cant just buy a great OS, you have to get it to market and have some compelling features and have it all working well together. RIM just cant compete in that arena.


RE: WTF?
By Pirks on 6/25/2012 3:23:05 PM , Rating: 2
Shut up and get back to work Thorsten, your spilling the beans on the coming sale of your company only hurts morale of your employees. You'd better polish BB 10 hardware and software some more to make sure people will buy enough of your stuff to return you to profitable state.

Although with competition from WP8 enterprise ready features, security, bitlocker encryption etc I think it'll be tough job for ya Thorsten


RE: WTF?
By retrospooty on 6/25/2012 4:51:42 PM , Rating: 2
Nice attempt at spinning this.

So you aggressively defend RIM for over a year, saying over and over how great thier products are and how we are all trolls for not seeing it... Now that its obvious that we were right all along and the end is coming, you act as if you weren't the same Pirks calling me, Jason and everyone else out on being too negative with RIM?

You really are delusional.


RE: WTF?
By Pirks on 6/25/2012 5:51:30 PM , Rating: 2
You know so much about RIM's pending sale, price, date, everything, but you don't know anything useful about their BB 10 phones. Bad bad boy, why are you hiding the most interesting info from us eh?


RE: WTF?
By retrospooty on 6/25/2012 6:05:54 PM , Rating: 2
I'll take the fact that you bought a Windows 7 phone and have stopped arguing for RIM that you agree we were right all along and that you were wrong.


RE: WTF?
By Pirks on 6/25/2012 7:13:39 PM , Rating: 1
How could I buy second phone with BB if I already got one with BB7 and there was nothing more new than this? Of course I got WP7, what else would I get then? Tiny screen iPhone with piece'o'shit breakable glass on its back or malware laden molasses slow laggy crapdroid?

I see the basic logic is not your friend Thorsten. How the heck can you lead such a huge company if you fail even at basic logic? Ya all smell fishy buddy :P

OK crapdroid was on my radar, I admit I considered Galaxy Note because of its best phone screen ever, but with rumors that WP8 is going to take its place on Note sometime next year I laid all my crapdroid aspirations to rest for now.

See how its easy Thorsten? Use your brain, please, tall guy. You can easily understand why I got WP7 after buying BB7. This is logical, and has nothing to do with your pending RIM sale :P


RE: WTF?
By retrospooty on 6/25/2012 7:59:52 PM , Rating: 1
Oh, I get why you bought WP7, its pretty slick... It's the turning your back on the BB part that amuses me. You somehow (lamely in your own mind) come out as if you arent full of shit... But no-one other than you sees it that way.


RE: WTF?
By Pirks on 6/25/2012 8:22:12 PM , Rating: 2
quote:
It's the turning your back on the BB...
...that exists only in your wet dreams. In reality I said multiple times that BB 10 may save RIM no matter what you tall guy are feeding us with, I mean all that BS about pending sale etc


RE: WTF?
By retrospooty on 6/26/2012 7:12:43 AM , Rating: 2
To be clear... "Turning your back on BB" meant, in spite of all your rantings, you bought something else. When it came time to put your money where your mouth is, you finally got hit with the common sense bat.

To be clear... There is no "pending sale". RIM is looking for a buyer because they are at the end of the rope and they know it. They have hired financial firms to evaluate the company, that can only mean one thing. It's a for sale sign. Make of it what you will and spin it all you want.


RE: WTF?
By Pirks on 6/26/2012 1:53:31 PM , Rating: 2
quote:
in spite of all your rantings, you bought something else
Yeah because I got one of the best phones to play with, so why not to get another one to play and compare? If your brain were not so damaged by crapdroid you'd do exactly the same.

To be clear... There is no pending sale. RIM is looking for help from banks because banks are better at some financial things like getting capital, spinning off a division, etc, and RIM knows it. They have hired financial firms to evaluate the company, that can mean many things. It's could be deal to get more capital, help with reorg or help with spinning off manufacturing assets AMD style. Make of it what you will and spin it all you want.


RE: WTF?
By retrospooty on 6/26/2012 2:06:09 PM , Rating: 2
Finally, a logical argument. A wrong one, but at least its logical.

We'll just have to see. So far, I have been 100% right, and you 100% wrong, but your chances are looking really good this time for sure ;)


RE: WTF?
By Pirks on 6/26/2012 2:26:47 PM , Rating: 2
You're NOT 100% right until RIM is entirely bought out by another company. Until then, you're just a troll. But you turn from troll to prophet the moment this happens, sounds like a fair business to me :P


RE: WTF?
By retrospooty on 6/26/2012 2:35:10 PM , Rating: 2
Yes, but you'll always be a doofus. =P


RE: WTF?
By Pirks on 6/26/2012 3:47:55 PM , Rating: 2
And you'll always be an anti-RIM troll :)))


RE: WTF?
By retrospooty on 6/27/2012 2:07:36 PM , Rating: 1
Even after they cease to exist??? Will I be a post mortem anti RIM troll? Maybe the term Retro troll fits me better. Yes, I like that one. ;)


"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki