Microsoft to buy BlackBerry-maker Research in Motion?

“The plunge in Research In Motion’s (RIMM) share price has fueled speculation that the maker of smartphones is vulnerable to a takeover—but buyers are unlikely to go BlackBerry-picking anytime soon. Shares of the Waterloo (Ont.) company got pummeled again on Oct. 20, dropping 5.21, or more than 8%, to 53.80. The catalyst was a series of bearish research reports from analysts,” Arik Hesseldahl reports for BusinessWeek.

“Peter Misek, an analyst at Canaccord Adams, was quoted in a recent Reuters report as suggesting Microsoft (MSFT) may be interested should the shares fall much further,” Hesseldahl reports. “An accelerating rivalry with Apple (AAPL) and an economic slowdown that threatens to curb demand for BlackBerrys are contributing to talk of RIM’s vulnerability.”

“Further stock price weakness, the theory goes, might elicit a bid from Microsoft, particularly in the wake of its failed pursuit of Yahoo,” Hesseldahl reports. “Microsoft has more to gain from RIM in the wireless arena than it did from Yahoo on the Web, Misek argues. ‘Microsoft has already lost the war over search as currently defined,’ he says. ‘It’s now at risk for losing the next search war, in the mobile world.'”

“As appealing as the hookup may be, there are greater reasons for Microsoft to stay on the sidelines,” Hesseldahl reports.

Full article here.

[Thanks to MacDailyNews Reader “Brawndo Drinker” for the heads up.]

29 Comments

  1. MS just wants to drain the remaining cash out of companies now to keep itself alive. I am sure there are billions of dollars tied up in both Yahoo and RIM. If MS can buy them cheap enough and just crater them while sucking them dry.

  2. This reminds me of a Jim Neighbors cover

    “If I had a hammer
    I’d hammer in the morning.
    And if I were worth billions
    I’d f*#$in’ throw it away”

    He was gangsta
    When gangsta wasn’t cool…

  3. If MSFT was to buy RIM and was able to keep it’s ‘Microsofty-ness’ out of the equation somehow (improbable,i know), it could be a fruitful partnership.

    The 1st decision would be: do they go w/ BB OS or WinMobile? If it’s WinMobile, does MS undercut all other WinMobile device makers ala ‘PlaysForSure’? or if they decide to stay w/ the BB OS, do they support TWO mobile OS’s? and I’m sure brown z00nBerry fits in their somehow too..

  4. z00nBerry fits in their somehow too..
    as in ” heir, their, everywheir”… or “our, your, their”?

    One thing is more-or-less certain. MS would be able to bleed much more money on advertising and subsidising the devices than RIM can right now.

  5. I went to Disneyland last week, and at the Tomorrowland exhibit, they had several big ass tables for people to play with. I have to admit, it was kind of neat. They lost me at the Zune display though!

    I saw more iPhones and iPods there than I could count, and I have yet to this day, NEVER seen a Zune in the wild.

  6. I think it would be a good fit…as much as I respect Apple, they haven’t yet closed the deal on the iPhone (notifications and copy paste) and I suspect they are getting complacent because there is no credible competition yet.

    I also believe an LG Android phone on Verizon could be compelling.

    Sorry Apple, but after 7 iPhone purchases under my belt…you’re losing me.

  7. This would provide a lot of synergy for Microsoft. They could bring back the Gates and Seinfeld commercial, both of then in the shower.

    Gates: You know Jerry the Zune is now waterproof so that you can bring it into the shower (shows people the Zune).

    Voice of Seinfeld (unseen): Wow that is great Bill.

    Gates: And there’s nothing quite like a RIM job.

    Seinfeld (getting up from behind Gates): You know your right Bill, it stays nice and hard, while my bread gets soggy in the shower.

    Bill: Ooooops I dropped my Zune.

    Seinfeld: Don’t worry Bill, I’ll get it..again.

  8. Hey people take a chill pill. RIM is a good company and brought innovation to the mobile market where there was none….just like Apple does (remember Apple???).
    That being said, I doubt it will happen because the Canadian government like to regulate these things and may very well not want an American company to take RIM over.
    Rim is trying to re-invent themselves because Apple is redefining the market (and I say good on them). We all win with competition.

  9. Not as far fetched as you may think. If you have used a Windows Mobile device you know how desperate MS is to have some decent mobile software. Windows Mobile is an embarrassment and if MS doesn’t do something drastic there will be no market for MS backed mobile phones.

  10. please noooOOOOoooo!!! I’m 3 weeks away from a Telecom update and even though my trusty BB 8800 is fantastic, I would really love to get the Bold (or whatever that new flagship is called). However, there’s no way in the world I’m going to use WinMobile OS! Oh, and please don’t tell me to get an iPhone. I tried one for about 4-6 weeks and really tried to like it but unfortunately it doesn’t cut it for me. Maybe in 1-2 yrs.

  11. I know it seems like MS has unlimited amounts of money, but even they’re going to run out of it eventually, and in that spirit, I say keep MS buying up everything in sight, especially if they have no plans for developing it. On the other hand, as cool as the iPhone is, RIM is about the only real competition that Apple’s got in this particular area, and I firmly believe that competition is what got Apple here, and it is the only thing that will keep it here in any meaningful way.

    Why doesn’t MS event something that people actually want to buy… And of course, that’s their whole thing right there: They don’t invent anything, they just look for buttons that they can push in order to corner yet another market.

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