Google’s Acquisition Of Motorola May Serve As A Wake Up Call For RIM

Posted Aug 16, 2011

BlackBerry company Research In Motion Limited (TSE:RIM) will face an increase in pressure due to Google’s acquisition of Motorola Mobility Holdings Inc. RIM is now seen as a smaller rival compared to other mobile companies. This may force RIM to sell themselves or partner with another major company.

Microsoft has a partnership with Nokia, Hewlett Packard acquired Palm, and Apple became the most valuable company last week. RIM is constantly losing market share as consumers are starting to prefer smartphones that are capable of running games, music, movies, etc.

Lately there has also been a consolidation of patent power. Microsoft, Google, and Apple have been acquiring patents left and right, giving them power to sue other companies. A group of companies including Apple and RIM agreed to spend $4.5 billion to acquire Nortel Networks Corp.’s patent portfolio. RIM currently has 2,033 patents. Through the Motorola acquisition, Google will gain an additional 17,000 patents. This past July RIM announced that they are planning to cut 2,000 jobs, the equivalent of 10% of their entire workforce.