Is Microsoft looking to buy RIM?
Is Microsoft looking to buy RIM? According to the latest buzz on Wall Street, the answer is possibly, but only if RIMs shares hit the $40 mark. With RIMs shares hovering around the $60 mark, Microsoft is rumored to be looking for RIM to tumble further before taking action. Said Canaccord Adams analyst Peter Misek, “RIM is a massive strategic fit for Microsoft. I’m fairly certain they have a standing offer to buy them at $50 [a share].” Granted this does sound a bit far fetched, but considering that the market cap of RIM is approximately $34 billion at $60 a share and would equal $28 billion at $50 per share, the move makes sense. But how would Microsoft afford such an expensive purchase? With cash and stock options, something which Microsoft has $23.6 billion to spare. If you were Balmer & Co., would you pursue the purchase of RIM?
I’m sure on some level that I can’t quite comprehend the move makes plenty of sense for Microsoft to do. However, if they are looking to put Windows on a BlackBerry, they wouldn’t do anything but successfully destroy the BlackBerry brand. Windows, being so unstable and craptacular, would all but demolish the BlackBerry in the enterprise market and I’m sure all those government accounts wouldn’t be too pleased about rocking a Windows BlackBerry.
My guess is that this is just another rumor, much like the last time this SAME rumor came up that MS wanted to buy RIM. Would they want to buy RIM. Sure. Will it happen? Doubtful.
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Come on now, this same silly tired rumor gets brought out every 6 months.
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Right, but in this possible scenario, as far as I understand it, RIM wouldn’t have a choice.
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Correct. This would be a hostile take-over, one that couldn’t come at a better time for Microsoft. Shares in RIM have been hammered in the past two fiscal quarters by nervous investors and the credit crunch, fear of recession, and global financial meltdown isn’t hurting their chances, either.
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Microsofts stock buy back may put a crimp in the purchase. These days of tight cash on hand make deals like these difficult to navigate. Not sure stock alone would be attractive enough. MS hasn’t seen a move up in ages.
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For this kind of hostile takeover, MSFT would need shareholder approval of a takeover. They cannot do it buy simply trying to hold a massive market share of RIM (the share price would rise on the increased buying, and the price would soar on word of an MSFT takeover). Now would the shareholders agree to a takeover worth 40% less than 2 weeks ago? I don’t think so. Everyone agrees that most stocks are undervalued so shareholders won’t agree to $50/share much less $40.
This is a great time for MSFT to slowly buy RIM shares, but not a good time for a hostile takeover.
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hmm….I think I might have to call my broker about this one
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Interesting Rumour, RIM could gain a lot from Steve B’s Developer enthusiasm instead of treating both their own coders and external coders like crap.
However. I do think this is a pretty unlikely scenario given the cost of the acquisition compared to MS’s current finance options and the probable culture integration problem.
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Of course I would acquire RIM if I was microsoft this would blow the doors off everyone else!
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Simply: NO. The Canadian government has been facing a lot of pressure with the takeover of Canadian businesses and has actually blocked the sale of a couple. It is very possible that the Canadian government would simply block the sale of RIM.
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Source:
http://www.cbc.ca/money/story/2008/04/10/mdablock.html
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Wow so if this were to happen, maybe the Storm 2 will have WinMo 7–oh wait, by then that still won’t be out!
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Microberry, winblack
Softblack, Blackmicro
Microblacksoftberry mobile
Winberry
What would they call it…and yes I’m in the bunch that says hell no I won’t go
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Cue “The Imperial March” right now.
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Zune. Always trying to make a success of that and this speculated buyout could finally do it. The ZunePhone from Microsoft.
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RIM has been holding its own in the marketplace despite threats on both the Server side (Exchange Activesync included free with Exchange Server) and hardware/OS (iPhone, Windows Mobile and Symbian). A Microsoft deal would eliminate the BES pressure but I think it would really muddy the Windows Mobile strategy, with the likes of HTC likely jumping ship to Android (yes they have a toe in the water there but they’re making all their money from WM today).
I also suspect MSFT ownership of RIM would ruin RIM…other than the Xbox, MSFT doesn’t do hardware very well (hello Zune).
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@mickliq
You forgot to mention theey don’t do Software very well eiter…………sometimes.
That would be the Selloff of the last canadian Icon. I hope that’s never gonna happen.
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As much as I like Microsoft and love RIM, the marriage of these two is a match made in hell. Putting MS Mobile OS on a Blackberry would effectively destroy the brand, functionality and usability of the RIM product line. If RIM were smart, they would stick to their core values, harden their core competencies and partner with a company that could spruce up their phone OS.
I sure do hope this is only a rumor…however, such rumors could also drop the stock price of RIM…careful what you put out there!
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Wrong. If M$ and Win Mobile were so great, then this would already be the case. Unlike M$, BB devices are popular due to what they do, not what brand they are. Put Win Mobile in a BB case and you kill that. It would be the end of a great product.
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Horrible idea… can you imagine WinMo running on a BB?!?!?!?!
I just threw up a little in my mouth…
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wow what a terrible idea.
I chose BB over Win Mobile, I don’t want them merging in any way
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Even with RIM having software problems, WinMo is 100,000x worse.
They would kill the blackberry.
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if this ever happened i would never get another blackberry. i made the mistake of getting a winmo device and it will never happen again. MS would destroy blackberry instantously
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BG why do you frighten us like this? Not cool man. not cool.
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I don’t get why you guys all assume Microsoft would start putting Windows Mobile on Blackberries.
Microsoft isn’t stupid. They know BB is the best selling smartphone brand around. They’ll probably buy it and ride the wave.
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