Microsoft has a secret weapon to take on Apple in the smartphone sector - buy someone who already does, and it appears BlackBerry manufacturer, Research In Motion (RIM), is in Ballmer's sights.
Canaccord Adams analyst Peter Misek points out that RIM shares are in decline and warns that Microsoft appears to have a "standing offer to buy them at $50 a share," he told Reuters.
Like Apple, RIM offers hardware, software and services and already plans to launch its own App Store. Microsoft is in a similar business, yet its Windows Mobile software, while widely used isn't particularly liked by handset owners.
With Apple and RIM clearly involved in a two face confrontation, the analyst's speculation suggests Microsoft could buy its way into direct competition with Apple in the smartphone market, assuming such a deal goes ahead.
However, D:All Things Daily observes such a merger could fall foul of competition authorities. "Leaving aside for a moment the fact that Microsoft already has a mobile OS in Windows Mobile and the fact that RIM’s client architecture is, you know, based on Linux, wouldn’t a merger between two of the largest players in the smartphone market invite antitrust scrutiny?" writes John Paczkowski.
These rumours have been in circulation since August 2007, when CBC News indicated, “Microsoft has been mentioned as a possible buyer," Frederic Ruffy, an analyst at options education firm Optionetics said. "According to speculation, the software giant might be interested in RIM in response to Google's recent announcement that it is interested in making its own mobile phone operating system, which would compete with Windows Mobile."
The G1 Google Android phone is claimed to have sold 1.5 million units so far.
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Comments
That's great. So if anyone
That's great. So if anyone wants their company to flounder and go out of business, just sell it to Microsoft. I guess you can all kiss you Blackberries goodbye.
Yeah... the best part of this
Yeah... the best part of this strategy is how MS will buy RIM and then put Windows Mobile on the device which will basically make everyone buy an iPhone because Windows Mobile is teh suck.
Whats wrong with the RIMM's
Whats wrong with the RIMM's financial that makes it a target. the current drop in stock price is due to market meltdown. the RIMM board and shareholders understand that.
Didn't RIMM take over Windows Mobile in smartphone market share in the US. They are obviously doing lot better than Windows Mobile is.
You sell a company when your going down and see no sign of recovering, not when your going UP. RIMM board ain't going to sell cause of market pressure on its stock price. $50 per share is underestimating RIMM.
Not going to happen
Nope. I'm sure Microsoft wants to but it ain't gonna happen. Face it.....unless windows 7 turns out to be a doozy (and it won't) Microsoft will be history.
If M$ buys Blackberry, I will
If M$ buys Blackberry, I will go outside and drive over my phone.... This could possibly be the end of RIM as we know it.
The only way this would make
The only way this would make sense is if Microsoft bought RIM then asked RIM to manage Microsoft.
Best comment ever!
Best comment ever!
Steve Balmer is something
Steve Balmer is something that rhymes with, as my sister says, "betarded".
Didn't MS just blow a
Didn't MS just blow a crap-tonne of cash buying back stocks? Not that they're short on cash, but they're short on that kind of cash.
Hmm - should I have titled
Hmm - should I have titled this something else? Some conjunction of the words "Microsoft's" and "job" and "RIM"?
Any ideas, gentle readers?
Oh, man, I'm lovin' it
If mister softie buys RIM that would be great. The operative philosophy here would be, "if it don't need fixed, break it." I'm long Apple!
Look! Reality!
Didn't Microsoft say that to get a larger market share than Nokia you have to separate hardware and software? And isn't the main reason the BlackBerry's so good is because of software?
So... they want to license the BlackBerry OS to third parties.
BlackBerry owners, watch out. The moment RIM is bought by MS, you need another option.
~ KA
They already bought Danger, makers of the Sidekick
Microsoft already bought Danger, makers of the Sidekick, earlier this year so I don't see why they would go after RIM. The whole idea behind buying Danger was to buy into the hardware side of the business seeing as they are incapable of developing their own. A play for RIM, although also accomplishing the task of buying the marketshare leader, would essentially be doing the same thing, buying into the hardware side of the market. Seems too redundant to me.
> The only way this would
> The only way this would make sense is if Microsoft bought RIM then asked RIM to manage Microsoft.
Apple saved themselves when they bought NeXT which enabled Steve Jobs to return and manage Apple. But would MS ever let any RIM brass take over? Would MS let any competent outsider take over? No way. Therefore MS is doomed.
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