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MS may have "standing offer" to buy RIM

updated 07:55 am EDT, Fri October 10, 2008

MS May Buy RIM

The recent plunge in Research in Motion's shares may help trigger a takeover by Microsoft, Canaccord Adams analyst Peter Misek says. The financial expert believes that Microsoft has a "standing offer" to buy out the BlackBerry maker at a value of $50 per share and may do so if RIM's recent share decline leaves it significantly below that mark. The company is said by researchers to be independent but potentially open to a deal if made under friendly terms.

Such a move would immediately alter the smartphone industry. While Windows Mobile is significant with about 18 million devices sold using the platform between mid-2007 and mid-2008, a Microsoft buyout of RIM would give it approximately 20 million BlackBerry users plus any additional growth in the future, giving the company a much larger stake in business phones than it has today. In the US, Microsoft is below the top five in the mainstream user space, which has lately been dominated by the iPhone and BlackBerries.

Any deal would nonetheless create integration problems for Microsoft. RIM's signature push e-mail system for BlackBerries provides much of the same functionality as the e-mail component of Microsoft's Exchange system, supplying messages in near real time. A dependency on the BlackBerry system at many businesses would require Microsoft to either code the feature into Windows Mobile or else to continue running BlackBerry OS as a second mobile operating system.

Neither Microsoft nor RIM has commented on the prospects of a deal.



By Electronista Staff
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Comments

  1. Azazello

    Fresh-Faced Recruit

    Joined: Oct 2008

    +9

    RIP

    Fabulous!
    Microsoft would ruin a remaining competitor to the iPhone...

  1. eldarkus

    Fresh-Faced Recruit

    Joined: Feb 2004

    -1

    Azazello

    Damn it.. you beat me to it!!! lol!

  1. addiecool

    Dedicated MacNNer

    Joined: May 2001

    +9

    DAMN

    If this happens any day my BOLD will see the trash can. Sad for both users and RIM itself. I cant associate myself with anything microsoft.

  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999

    -7

    wait but...

    Isn't the Apple the little guy? RIM, MS, and Symbian are all bigger players. Kids, remember that it's Apple that's playing catch up here... no matter how cute the iphone is.

  1. addiecool

    Dedicated MacNNer

    Joined: May 2001

    +3

    oh yeah

    Well Apple has sold more phones in weeks then the "Big Players". People buy good products. It has nothing to do with "Big Company" or "Small Company"

  1. Constable Odo

    Fresh-Faced Recruit

    Joined: Aug 2007

    -2

    That would be great

    cash infusion for RIM in the short term. Look for RIM investors to be rejoicing while RIM share prices zooms past Apple's. Since most Apple people see RIM's Blackberry being destroyed by the iPhone it really doesn't matter if MS takes it over or not. It doesn't matter how many iPhones Apple sells, the share price will still stay low. As an Apple investor these things about share price still matter to me.

  1. jdonahoe

    Junior Member

    Joined: Jul 2006

    +4

    I'm mixed on this one

    I'm mixed on this one. On one hand I cringe at the prospect that buying RIM obviously gives Microsoft their own "workable" phone instantly. On the other hand, I feel sorry for all the Blackberry users who will have to endure a microsoftification of their interface and system. You know Microsoft is not going to just buy the company and let it operate as it always had. It's gonna "improve" it. Yeah, that's the ticket.

  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999

    +1

    Buy it and bury it

    If MS follows its customary practice of buying competing technologies only to bury them and stop the competition we will see once again the death of great technology in benefit of MS's crappy alternatives. If at least MS did what Apple usually does, that is, buy a competing or cool technology from someone and then really add to it and improve it, making it more attractive than before. This is not the way MS works though. If anything they have the skills to make anything worse than it was when they acquired it.

  1. rtbarry

    Fresh-Faced Recruit

    Joined: Aug 2001

    -1

    RIP RIM

    RIP RIM

  1. Salty

    Professional Poster

    Joined: Jul 2005

    +2

    Doubt it

    Doubt it, I doubt the Canadian government would OK such a buy out. I imagine Canada likes the fact that we have a major industry player up here. I should hope this wouldn't be allowed.

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