RIM Acquisition Just Rumour Fodder, For Now

RIM’s future is a hot topic for discussion lately as their stock price has slipped considerably in recent months. That has led some analysts to float the possibility of RIM being an acquisition target.

The most likely potential suitors could be Google, Microsoft or Cisco. But in lieu of sluggish financial performance and serious questions about product roadmap, an acquisition may not transpire for some time yet. Which is another way of saying that as long as potential acquirers think RIM’s stock could fall further, they’ll wait before making any overtures.

“Our view is that any potential acquirer would be conducting extensive due diligence while waiting to see how RIM’s competitive position transpires over the next several quarters” - National Bank Financial, Kris Thompson

While there is a lot of doom and gloom out there, not everyone is writing RIM off. Prominent Canadian tech blogger Mark Evans feels claims that RIM will go the way of Nortel are premature.

With the right strategic execution, significant improvements in the half-baked Playbook and a big dose of luck, RIM could keep its status as a tier-one smartphone maker. In a blink of an eye, Nortel went from a tier-one telecom equipment supplier along with Cisco and Alcatel to second-tier, plagued by a portfolio that did not include a market-leading product line.

Again, make no mistake RIM faces some major strategic and tactical challenges amid fierce competition from Apple, Google and Samsung. If RIM continues to stumble, the company could implode. But with the right moves, RIM could regain its industry-leading status. – Mark Evans Tech

Needless to say this should be an eventful and critical finish to the year for the BlackBerry maker. Stay tuned to PROFIT for all of the latest RIM news.

Catch the latest Canadian Business news updated 24/7 at PROFIT.ca/Reader

photo: tangi_bertin

Short URL: http://profit.ca/aj0