Is Microsoft looking to buy RIM?

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?

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67 Responses to “Is Microsoft looking to buy RIM?”

  1. 26
    BB FAN says:

    Even if it makes sense with the numbers Windows would destroy the Blackberry Brand. That would be a big bust for Microsoft who out there will use a Blackberry with windows on it? NO ONE!

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  2. 27
    No One says:

    I just have one thing to say to Gates and that is don’t you dare think about doing it. I went to blackberry for it’s stable platform and push email. I’m not about to stay with them if microsoft buys them out. I’ve had a very good experience from my first blackberry 8700g to the curve 8320, and I was hoping t-mobile would get the bold by Christmas. If Gates thinks more and more about buying out RIM, I wouldn’t be surprised if all the blackberry owner’s switch to something as or more reliable like the iphone. When I had the iPaq 6315 and the t-mobile mda, they were ok phones, but I couldn’t download a day or 2 days worth of email with no problem. The battery life on those things were terrible and the OS wasn’t good at all. I can’t imagine what all members of congress the have blackberries are going to do if Microsoft buys RIM.

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  3. 28
    Nerfman says:

    The arrogant Canadian’s would have nothing to do with MS. They think of MS as a disease that socialized medicine will take six months for an appoointment not a stratgic fit!

    With all of RIM’s latest issues hopefully they grow a little more humble and admit they screw up sometimes.

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  4. 29
    vtechonda says:

    I’m still trying to get over this statement from Chris “As much as I like Microsoft and love RIM”
    WAIT,
    I never knew people actually liked Microsoft.
    I thought most people used Windows and other M$ products because they didn’t know any better and thats what they were use to, or because Microsoft owns 90% of the desktop market, and they felt forced to need Microsoft, out of fear that they couldn’t productive using something “Unix-like.”
    Just the thought of people picking up Vista, a Zune, and an Xbox from there local Bestbuy and being like “hay! I love Microsoft, without them I don’t know where the world would be, hold on… I’m going down to my local AT&T and picking up a WinMo based phone right now.”
    I mean I’m I the only one that thinks that’s just alittle strange…

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  5. 30
    Joe says:

    I HOPE THIS HAPPENS!!!

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  6. 31
    j.p michaels says:

    @Nerfman
    I am not sure about the arrogant statement you came up with. MS is crtainly a bad disease.
    I think of MS they are modern day pirates, if they can’t compete it has to be bought out and rebranded. The only 2 places where this might not work is GOOGLE and RIM.

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  7. 32
    Blackula says:

    LAMO @ bbchristopher,

    i feel you on that part man lol

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  8. 33
    gquaglia says:

    I don’t get why you guys all assume Microsoft would start putting Windows Mobile on Blackberries.

    Microsoft isn’t stupid

    You want to bet on that? M$ doesn’t want RIM’s product, they want the competition out of the way. M$ has a long history of this type of practice.

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  9. 34
    John J says:

    Only way this makes any sense is if Microsoft wants to dump windows mobile for a real OS. Put exchange support in it and the media player and that would a great OS. Forget everything else about windows mobile

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  10. 35
    Likeabite says:

    I see Nate is the only competent one amongst you guys. Microsoft would not just port their OS onto blackberry products. Those of you jumping to that idiotic conclusion is like saying that there is Windows Mobile on Danger produts. Microsoft purchased Danger but you don’t see WinMo on a sidekick or anything like that, do you? It would just be a great strategic move to have the biggest corporate smartphone brand in your pocket, especially with all these new OSes and mobile products springing up like every day. And BG I’m mad you said how can Microsoft afford such an expensive purchase. It is the 8th largest company in the world…I’m pretty sure they can afford to purchase a $34 billion company with no hassle…when their market cap is at $230 billion. And the cocky Canadians wouldn’t be able to stop nothing…just sit by and watch.

    Vtechonda I’m one of those guys that actually love Microsoft. I’m an IT Worker and I have a Zune, a Vista laptop and an XP desktop. I love all of those products and I have used all the other products you mentioned before. I chose a PS3 over a 360 and I have Ubuntu installed on it so don’t start thinking I do not know what I am talking about. I have used and fixed MACs for years and I still prefer a PC. I have a 6700 with Verizon that I have had for over 2 years and I still use it everyday. I like it just fine. I will get the Storm but that is only because I just want to be the first to have it and will probably revert back to the Touch Diamond a month after just to have Windows Mobile again. It has more third party apps than any other phone on the market and it offers all the desktop apps that I need so I do not see what the issue is with Microsoft. I don’t buy anything from Apple simply becuase of the same reasons that you listed. People only buy Apple products like the iPhone or the iPod just to be like everyone else and seem cool. I don’t know when having the same thing as everyone else became the cool thing but thats well beyond me.

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  11. 36
    JaggedXJ says:

    This will resul in (OS problems)^2.

    However I have yet to see any impact of MS acquiring Danger. WinMo on Sidekick. No. MS eff up the Danger OS. No. Danger OS on any platform not built by Sharp or Moto. No. It may still be too early to tell what the end result of DangerSoft will be.
    If MS continues to be that hands off without neglecting the acquired company’s product I *may* be kinda okay with it. (Looks around with paranoia in his eyes) Hope it doesn’t happen none the less.

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  12. 37
    opm says:

    Completely agree that microsoft won’t be messing with the OS, as much as people think. If anything, they’ll throw R&D dolalrs at RIM to expand and make more products. To me a lot of this is to have control over the corporate back end and better merge Enterprise and BES. Simple as that.

    While I agree with your conclusion that Vtechonda is daft, I disagree on Apple. I love my Zune and hate my iPod, but I have to give props where they are due. Apple, has done an amazing job on many of their products and their marketing wouldn’t be effective if there wasn’t some truth to their product quality. They aren’t as great as their fanboys wish they were, but they’re pretty damn good.

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  13. 38
    opm says:

    I love my Zune, I love XP, and I love my apps for Windows.

    Otherwise stop your trolling.

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  14. 39
    keymaker says:

    It will never happen, 1st Rimm shares will never hit $40 2nd, even if they hit $40 a share it’s not like they’re going to hand over the company to Msft for $50 a share, it will never happen, remember this is a $140 stock and is just getting hurt like everyone else is in the market, look at Dell for example, it’s worth peanuts right now too

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  15. 40
    Likeabite says:

    opm I agree with you that Apple does have a strong and quality build to their products and I love the UI for the iPhone and what it did for the industry. I am simply saying that most people flock to Apple just to be cool, not knowing anything about the quality of the product or how to even use it as some of us do and just get it just to be “in”. That is what I was trying to get at.

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  16. 41
    mangenius says:

    Wow maybe 2 or 3 smart posts out of 40…

    Microsoft, if they were to purchase RIM, would NOT get rid of the OS. They wouldnt buy RIM for their handsets, they would buy RIM for their marketshare, their security and the system that ties it all together – which does not include microsoft.

    Now could you expect a 8330WM device LOL probably but dont expect anyone to buy it

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  17. 42
    Nikolaus says:

    Better not!!! If MS buys RIM then I will drop my BlackBerry and never look back!! I will not be tied to MS, not because they every screwed me over, but it does not make sense to have such a huge company rule everything. If MS buys RIM then Google’s G1 will become the new phone of choice for most BlackBerry users I’d say, which will only see RIM implode under the guides of another MS blunder.

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  18. 43
    michael k says:

    … or, as Tim Allen so aptly named it years ago, a vurp!

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  19. 44
    saint_sober says:

    Welcome to WinMo7 (aka BES).

    I have to say that I am shocked to see not just one but three people say they actually like their Zune. You three are the first that I have seen. Then again, I haven’t been looking. Can’t say that I’m crazy about my ipod but it does it’s job well enough.

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  20. 45

    That picture looks like an unholy alliance but I highly doubt that they’ll put a windows OS on a blackberry. MS is smarter than that.

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  21. 46
    Nate says:

    Add me to the list. I just bought my second Zune.

    It’s a nice player. Really, it’s not much different than using an iPod. I just like the hardware better, and it has the added bonus of serious, free, software updates.

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  22. 47
    vtechonda says:

    Well I use to work in IT for many years, I have Microsoft Cert’s. I even built a Windows Network from the ground up for my dad’s company Windows domain controller and all.
    I one point my young self, hated apple.
    As I got older and was shown different flavors of Linux, I though “why” it’s a cool platform, but why “(in the words of Microsoft) would people knowingly run into walls (if that makes any since to my fellow blogger).
    After I saw Microsoft jump into the videogame market, and the MP3/music player market. I had to ask my self why would this already huge gainormus company do this. I was fine with Windows in my computer, I was also fine with my Playstation, and my Ipod. I had a reason to switch from a Mini Disc, or a CD player to an ipod, I also had a reason to buy a playstation, and not stick squarely on nintendo, or sega for my videogame needs. But what does microsoft an already huge company that has a 200 billion dollar cash flow, have to offer me so I can switch over to a Zune, and buy and Xbox.
    And I thought “nothing, nothing major”
    But I was able to find reasons to buy a macbook Pro, and use Ubuntu.

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  23. 48
    vtechonda says:

    I for one would drop using my blackberry even if microsoft doesn’t change the OS.
    I don’t want to see Microsoft’s market share grow in the mobile phone market, I have already grown up in a world with their market share growing to 90% in the desktop market…

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  24. 49
    Dan says:

    Yeah, as if Wall Street execs need another reason to jump from tall buildings…

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  25. 50
    Marin says:

    Could be a remarkable move for Microsoft as long as they don’t force Windows Mobile on BB devices. Leave BB alone, and just make BB OS and Windows Mobile 7 compatible with each enterprise server.

    The problem is that I don’t think Microsoft wants to be in the handset manufacturing biz (although they own Danger?), but this would lock up the lucrative enterprise smartphone market, at least in the U.S.

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