- CrackBerry Abuser
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IMHO - Microsoft Should BUY RIM
So there are a couple older threads on this, but I want to bring this back up with a fresh thread. I honestly think Microsoft should BUY RIM. I'm surprised Microsoft hasn't already made a move. Here is the rationale:
1) RIM's stock price is down, and shareholder's are not happy - what better time to file a tender offer or hostile takeover?
2) Blackberries are basically corporate phones (biggest market) - meaning, they are basically integrated with MICROSOFT Outlook and Server, etc. If Microsoft owned RIM, it would own almost the entire value chain - software, email, hardware, etc. ****, Microsoft might even make it work BETTER since everything would be vertically integrated (think Apple).
3) Microsoft has been trying to get into the phone world for a long time and still can't seem to do it. What better way to get a customer base that already fits your corporate "DNA", while getting a cheap price on a market "leader" (they still own ~25% of the PDA market). Blackberry is obviously an established brand, with a solid OS, that has a strong hold of the corporate market. And they'd also get the playbook tablet thrown in there as well.
4) What else is Microsoft doing with the cash? It has a ton of cash just sitting on the balance sheet (like many companies in the U.S.). Not a very good use of capital. I dunno what you're getting on your checking/savings accounts, but I'm getting squat. I'm sure Microsoft is looking to put their money to work and get higher than .0000005% (joking, but rates are super low right now).
Oh, and if this happened, maybe we could FINALLY GET SKYPE FOR THE PLAYBOOK! HAH.
Last edited by Wangta; 10-31-11 at 06:59 PM.
- 10-31-11, 07:53 PM #8
1) RIM is Canadian, it would never be allowed
2) QNX/BBOS is better than Windows Phone OS, imo, both cannot survive in one company. If MSFT brought RIM, they would be inadvertently admitting failure of their Phone OS and also at the same thing bite their own tongue over 'Hardware Neutrality'. I also think this will definitely kill innovation when it comes to RIM / BlackBerry products (or some may argue this has already been killed but I stand otherwise corrected over new products such as PB / Enterprising Minds videos).
3) It will never happen as Jim / Mike own a combine stake of 10% and it is very obvious they have a lot of friends who together own a significant stake in the company (or else why would they still be the co-Chairs....).
theres just too many REAL reasons why this HYPOTHETICAL takeover is not reasonable.
- 10-31-11, 08:23 PM #9
You're forgetting the fact that when a company buys another company, it doesn't mean one company results. Microsoft could buy enough stock and change the board of directors. It doesn't have to buy the company and kill it off while absorbing its assets.
I think some of the people here commenting have no actual knowledge of business structuring or practices.
- 10-31-11, 08:36 PM #11
2: Your opinion. My opinion is the the BB PB is by far the worst tablet out there on the market and I'm a sap for buying one.
3: 10% is that all? Then BB are ripe for a hostile takeover. At a given percentage... a new owner can force all share holders to sell stock to him/her/them so it is owned 100%.
Lets see... Feb 2012 comes round, no update, shares nose dive in an already poor western economy... in steps a mystery buyer.
One can only dream
- 10-31-11, 08:39 PM #12
1. not less than eighty per cent of the members of the board of directors of the corporation are individual Canadians;
2. Canadians beneficially own, directly or indirectly, in the aggregate and otherwise than by way of security only, not less than eighty per cent of the corporations voting shares issued and outstanding; and
3. the corporation is not otherwise controlled by persons that are not Canadians.
The aforementioned points are highlighted in the opening Chapter of this law: House of Commons Committees - INDU (40-3) - Canada's Foreign Ownership Rules and Regulations in the Telecommunications Sector - i) Foreign Ownership and Legislation in the Canadian Telecommunications Sector
I wonder if RIM would be considered a telecommunication company or whether or not this term distinctly means companies such as Rogers and Telus? Where is a lawyer when you need one?
If it is a "technology" company, then the suggestion that Canada's government will not allow it to be taken over is moot - there are no Canadian laws that preclude foreign ownership that I am aware of. If there are, please advise.
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10-31-11, 09:16 PM #18
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More information on the act can be found here:
Home - Investment Canada Act
- 10-31-11, 10:23 PM #21
From what I can research RIM had a market cap of about 80 billion dollars 3 years ago. They now have a market cap of under 14 billion and are still losing share price value.
Too put that in plain english. RIM shareholders lost almost 70 billion dollars over the last 3 years. A share price and company value loss of about 80%.
Do I personally believe the Canadian government would stick their neck out on this one? Not a chance.
RIM are not a big company, their shares are still going south and confidence in their ability to get the job done is ever on the wane. Outages and failed tablet launch.
Shares are about 20 dollars right now. I reckon they will hit a low of about 11 or 12 dollars in Feb if the QNX and PB 2.0 is pushed back again.
Look at it this way Microsoft purchased Skype for almost 9 billion. RIM are not far off that value and are a far bigger prize. MS probably has a market cap between 250 & 300 billion dollars. Buying into the smartphone/tablet hardware market would be a choice feather in their cap.
Again, I'd like to see it happen.
- 10-31-11, 11:35 PM #22
Nah, they would break it into pieces, take those bits they wanted, and throw the rest in the Recycle Bin. It would result in an electronic Eve of Destruction.
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- CrackBerry Genius
11-01-11, 01:04 AM #23
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The government could easily step in to prevent a buyout. The loss of Canadian jobs and the massive brain drain as the brightest minds followed the jobs south, would definitely have an adverse effect on Canadian communities.
Make no mistake about it. Anyone thinking about buying RIM is not going to leave the company to run the way it is now. They will be breaking it up and selling pieces off for a quick buck.
- 11-01-11, 01:09 AM #24
Although purely academic at this point, it would be interesting to see whether or not there is public sentiment on the part of Canadians to press the Conservative Goverment to protect RIM from being bought it if a foreign take over bid did occurr.
- 11-01-11, 02:37 AM #25
i think the stock price is gunna drop even lower than what it is now. if it goes into the teens their in prime takeover position. i maybe a good idea for microsoft to buyout rim. they basically own the business market imho