Report: IBM Wants to Buy RIM's Enterprise Service Unit if BB10 Flops
August 10, 2012 12:12 PM
comment(s) - last by
No potential buyers have expressed interest in the phone unit
Waterloo, Ontario-based RIM is facing a daunting task by trying to make its next generation BlackBerry – which is running the new QNX-derived BlackBerry 10 operating system -- a success. Due out next year, RIM must somehow trying to jump over a series of high hurdles including
weakening brand image
, a crowded market, and a
significantly shrinking engineering department
To be successful, RIM must beat rivals like Google Inc. (
), Samsung Electronic Comp., Ltd. (
) and Apple, Inc. (
) who have proven success in consumer smartphone sales, as well as struggling, but deeper-pocket players like Microsoft Corp. (
If the much-hyped and
is unable to beat the rest of the field in features and revive sales -- an outcome
expected by many
-- RIM's leadership will likely be forced into the option they have resisted the most --
a break-up and sale
a new report
two sources close to RIM and the independent bank review panel -- the Royal Bank of Canada (
) and JPMorgan Chase & Comp. (
) -- it hired to assess its options say that International Business Machines, Inc. (
) has approached RIM with serious interest to purchase its enterprise division. IBM is one of the enterprise technology sphere's greatest powers and it arguably has the experience to repurpose the unit, hence this seems like a reasonable fit.
IBM is a top enterprise service and hardware provider. [Image Source: IBM]
But analysts say the potential sale will likely be put on hold while RIM waits to see whether BB10 finds fortune or failure. Adnaan Ahmad, an analyst at Berenberg with a sell rating on RIM’s shares, comments, "If they were to offload this, they are offloading their jewel. They want to give BlackBerry 10 a go, so I don’t think this would happen until next year."
That could actually benefit IBM, as failure of BB10 may lead to greater desperation at RIM and a fire-sale price for this prized unit. The unit, which made $4.1B USD in service fees charged to mobile carriers in 2011, is currently valued at $1.5-2.5B USD. But that value could dip lower depending on the fortune (or more aptly, lack thereof) of BB10.
IBM is reportedly considering gutting the Rimdenberg. [Image Source: Jason Mick/DailyTech LLC]
If the sale happens, the big question is who -- if anyone -- will want the phone unit. No parties, according to the
sources, have expressed interest in buying
of RIM since the review. Likewise, interest in buying the struggling phone unit has been non-existent.
While waiting to sell may ultimately burn shareholders by devaluing the phone and enterprise service units, in a way, long-term shareholders
don't have much more to lose
. A share of RIM stock is today worth about 1/20th of what it was traded for back when the company was popular and profitable in 2008.
This article is over a month old, voting and posting comments is disabled
RE: Even if...
8/12/2012 3:23:40 PM
(which it most likely will)
Quite uncalled for really. Just goes to show the whole ethos behind this article.
If you actually want BB10 to fail because you have put so much emotional energy behind it. (Plus, you'll look like a bit of a twat if it doesn't).
I believe it's acceptable to have an opinion; when it's called for. Snide digs like that show an unprofessionalism.
Let's be platform agnostic, and keep an open mind.
You'd never make a good poker player. You give too much away on how your thinking.
"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer
Amid Soaring Losses, RIM Leaders Preach Optimism; Stock Drops
July 11, 2012, 1:35 PM
RIM's CMO Says BlackBerry 10 is so Popular it Advertises Itself
July 10, 2012, 1:51 PM
RIM Takes Huge Loss, Lays Off 30% of Workforce, Delays BB10 Until 2013
June 28, 2012, 5:15 PM
Analysts: "RIM’s Death Spiral" Hits the "Third Inning"
June 28, 2012, 1:05 PM
Unsold BlackBerries Pile Up, Layoffs Near, But RIM CEO Claims All is Well
May 30, 2012, 10:05 AM
Reports: Snapchat is Now Worth $10B, Cofounders are Billionaires to Be
August 27, 2014, 9:30 AM
Tim Cook Says iPad Sales Have Merely Hit a Temporary “Speed Bump”
August 27, 2014, 9:16 AM
ZOTAC Announces Diminutive ZBOX PI320 pico
August 27, 2014, 9:00 AM
Verizon Wireless' VoLTE Service Tiptoes Closer to Launch
August 26, 2014, 3:21 PM
5.5” LG G3 Stylus to Make Its Debut at IFA 2014, Will Feature Budget Specs/Pricing
August 26, 2014, 9:00 AM
HTC Desire 820 to Set New High Bar for Mid-Range With Snapdragon 615
August 25, 2014, 3:07 PM
Most Popular Articles
New Photos Show “Assembled” iPhone 6, Protruding Camera Ring
August 20, 2014, 2:32 PM
Leaked Qualcomm Roadmap: 20 nm 64-bit Octacore Smartphone SoCs Cometh
August 20, 2014, 11:38 AM
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Report: Microsoft to Announce Windows 9 on September 30
August 21, 2014, 11:20 AM
From HULC to FORTIS: the Evolution of Lockheed Martin's Incredible Exosuit
August 22, 2014, 12:45 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information