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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



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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. ;)


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