Microsoft May Plan to Invest $3.5 Billion in RIM
Just one decade ago, with its signature BlackBerry handsets and email service, RIM walked proud as the leading gadget maker in the phone industry. But apparently, the mobile-tech sphere moved too fast for the company and before long Google and Apple swooped in and snatched most of its customers. RIM seems to be falling apart and some stakeholders are already hoping that the company will be acquired by a rival. Despite its failings, RIM has a mature infrastructure and an acquisition can still be an attractive option. The company isn’t in desperate straits and at the end of 2011; it still has $3.4 billion of cash pile left. The company has zero debt, technology to leverage, popular proprietary email and messaging service as well as a fully functioning R&D department. RIM’s solutions are also widely used by government agencies and corporation throughout the world. In any business standard, RIM is not such a bad company after all.
Recently, speculations are rife with Microsoft as a potential suitor. Another report stated that Microsoft is ready to inject $3.5 billion of fresh fund to the troubled company. If the rumor was to pan out, this might result in Microsoft having a major share in RIM. Microsoft is a popular brand in the enterprise market with its Windows OS, Microsoft Office and other productivity solutions. Due to some similarities in market segment, Microsoft may want to sink its teeth into RIM’s vast pool of enterprise customers. In 2011, Microsoft netted a profit of $23 billion and by injecting some money into RIM; Microsoft’s can have a stronger presence in the mobile market.