Thursday, December 8, 2011

Is Research In Motion (RIM) For Sale or Going Bankrupt?

What is the long term future for Blackberry? Once the darling of all businesses, it has lost its edge to both the Apple iPhone and other smartphone devices. Blackberry has not adapted fast enough and it allowed others to successfully takeover its space and market share. In addition, it's take on the tablet market with the release of the Playbook demonstrated that they did not understand the needs of the consumer. "We are still shocked the Playbook does not have native email functionality". What is obvious is that RIM behaved like other market leaders; they were set in their ways, adverse to risk, and unable to innovate against its rivals.

So the question is what will happen to RIM. Analysts don't seem to believe that RIM is an acquisition target, although they continue to see a depressed stock price. But what if a company was kicking the tires on the maker of Blackberry and could build some synergy to advance themselves in the mobile marketplace. Google took that step with Motorola. So let me throw out one name offered to me this morning. Could Microsoft benefit from purchasing RIM? Blackberry still has its feet in the market and there are loyalists to the product. Microsoft has the operating system and as my friend speculated, Windows 7 could be built into the next generation of blackberry products. A risky purchase given the trajectory that RIM is headed but fresh legs through acquisition might just allow it to survive and prosper again. Food for thought as the mobile industry continues to expand.