Considered Acquiring RIM This Past Summer

Posted Dec 21, 2011

Research In Motion Limited (TSE:RIM) has turned down take-over offers in the past, but one of the most interesting was from, Inc. (NASDAQ:AMZN). RIM knows that they have been having problems with maintaining a solid market share, but they prefer to get better as an independent. This past summer, hired an investment bank to review a potential merger with RIM. A formal offer was never made.

As of right now, RIM does is not interested in a joint venture or an outright sale, despite the interest. However RIM is still discussing ways to expand commercial ties with different companies, which include making’s music catalog available on BlackBerry devices.

RIM has a lot of work to do in order to survive. The company’s value dropped 77% in the past 12 months to about $6.8 billion as the company had kept reporting disappointing quarterly reports. Weak sales of the PlayBook have been cited as well. Some corporate and private equity companies are waiting for RIM’s value to drop even further before making a move too.

Another idea is for RIM to license out the QNX operating system in late 2010 after BlackBerry 10 launches. QNX could be an alternative for smartphone manufacturers to use instead of Android. But smartphone manufacturers such as HTC and Samsung already have licensing agreements with Google and currently do not see value in striking a partnership with RIM. This means that RIM would really have to provide a lot of incentives to smartphone manufacturing companies to even be considered a blip on Android and iOS’ radar.