Lenovo Says RIM Bid Among Options to Boost Mobile Unit

**cgk** · 01-24-2013, 10:13 AM

Lenovo Group Ltd. (992) is assessing potential acquisition targets and strategic alliances, including a deal with BlackBerry maker Research In Motion Ltd. (RIMM), as the second-largest producer of personal computers tries to bolster its mobile-device business.

“We are looking at all opportunities -- RIM and many others,” Chief Financial Officer Wong Wai Ming said today in an interview at the World Economic Forum’s annual meeting in Davos, Switzerland. “We’ll have no hesitation if the right opportunity comes along that could benefit us and shareholders.”

Lenovo Says RIM Bid Among Options to Boost Mobile Unit - Bloomberg

I'm always wary of taking quotes used out of context of the full interview on face-value - anyone able to find a transcript of the full interview?

**md03wx** · 01-24-2013, 10:17 AM

Imagine BB10 on Lenovo hardware? I think Lenovo makes good stuff ... (assuming a potential license deal and not an outright acquisition)

**Thunderbuck** · 01-24-2013, 10:19 AM

Yeah, this wouldn't necessarily mean a sale. Too soon to say.

**mikeo007** · 01-24-2013, 10:21 AM

It would probably be a good thing for both companies. Probably not a buyout, but maybe THE official hardware partner?

**W Hoa** · 01-24-2013, 10:22 AM

As the Bloomberg story notes, the concept of a Chinese company buying RIM would raise serious security questions that could lead to any potential deal getting blocked by U.S. regulators.

**shupor** · 01-24-2013, 10:22 AM

Originally Posted by md03wx

Imagine BB10 on Lenovo hardware? I think Lenovo makes good stuff ... (assuming a potential license deal and not an outright acquisition)

+1
They could also potentially break into the desktop computing market with Lenovo producing the hardware

**GTiLeo** · 01-24-2013, 10:24 AM

Originally Posted by Thunderbuck

Yeah, this wouldn't necessarily mean a sale. Too soon to say.

They were just talking about this on BNN. I doubt it'll happen. The possibilities of it happening is low

**playbookster** · 01-24-2013, 10:25 AM

Not happening. The only company I see buying RIM is IBM, and that won't happen either.

Sent from my BlackBerry Laguna using Tapatalk 2

**W Hoa** · 01-24-2013, 10:26 AM

The interview with Bloomberg is here:

Jan. 24 (Bloomberg) -- Wong Wai Ming, chief financial officer of Lenovo Group Ltd., discusses the outlook for its mobile business in China, the benefits of a public listing and Dell Inc. He speaks with Francine Lacqua on Bloomberg Television's "Countdown" on the sidelines of the World Economic Forum's annual meeting in Davos, Switzerland. (Source: Bloomberg)

Lenovo Sees Mobile Unit in China Turning Profitable: Video - Bloomberg

**derpOverflow** · 01-24-2013, 10:27 AM

Originally Posted by mikeo007

It would probably be a good thing for both companies. Probably not a buyout, but maybe THE official hardware partner?

Maybe just selling the hardware division to Lenovo.

**GTiLeo** · 01-24-2013, 10:32 AM

Originally Posted by playbookster

Not happening. The only company I see buying RIM is IBM, and that won't happen either.

Sent from my BlackBerry Laguna using Tapatalk 2

I agree as IBM is geared more towards the enterprise market like RIM. It's a better match up

**BaconMunch** · 01-24-2013, 10:34 AM

Official hardware partner sounds good, Lenovo did keep and maintain the Thinkpad brand once IBM got out of the hardware business. I think if Lenovo got a stake and interest on the software side, some of BlackBerry's existing clients may not be very happy and is surely considered in the strategic review.

**GTiLeo** · 01-24-2013, 10:34 AM

Originally Posted by derpOverflow

Maybe just selling the hardware division to Lenovo.

What's with the hardware division sales crap being tossed around now that it's recently beenreported. Truth is this has been a possibility since the summer

**derpOverflow** · 01-24-2013, 10:37 AM

Originally Posted by GTiLeo

What's with the hardware division sales crap being tossed around now that it's recently beenreported. Truth is this has been a possibility since the summer

And its even more of a possibility now

Lenovo did it with IBM and had some success and they want to get into mobile so this seems like a reasonable fit for both sides.

**silversun10** · 01-24-2013, 10:37 AM

not very likely the Canadian govt will approve a sale to a Chinese company,
are you kidding me? perhaps a license or perhaps they get to make RIM's phones, that is about it...

**md03wx** · 01-24-2013, 10:43 AM

Originally Posted by silversun10

not very likely the Canadian govt will approve a sale to a Chinese company,
are you kidding me? perhaps a license or perhaps they get to make RIM's phones, that is about it...

A license deal is exactly what RIM wants (not sure about Lenovo).

**BThunderW** · 01-24-2013, 10:46 AM

I think a partnership would be awesome for both Lenovo and RIM. Bring it on.

**Saiga** · 01-24-2013, 10:52 AM

Originally Posted by silversun10

not very likely the Canadian govt will approve a sale to a Chinese company,

Why do people continue to repeat comments like this?

The Canadian government has already said that they wont do anything to prevent a take over of RIM.

RIM sale would not be blocked by Ottawa - Business - CBC News

**JR A** · 01-24-2013, 11:01 AM

I have a personal vendetta against Lenovo. It's a love-hate relationship.

They make nice consumer products, but yet one model line, the ThinkPad laptop, they messed up. They completely ruined the ThinkPad with cheap components and shifted miles (kilometers) away from IBM/ThinkPad's identity. It seems every year since Lenovo took over ThinkPad, the quality of construction and components has declined (cheap TN panels used for screens nowadays as opposed to great quality IPS screens 6 years ago...) and more and more it seems the product line lost its true culture.

I would hate for this to happen to BlackBerry. Not to mention the security issue someone mentioned earlier of a Chinese company utilizing the most secure mobile platform in the world (and the NOC)...

**jr4941** · 01-24-2013, 11:02 AM

Remember, BB10 is a 'mobile computing platform' not just smartphones. Who knows? Partnership with Lenovo?

**cjcampbell** · 01-24-2013, 11:07 AM

Originally Posted by Saiga

Why do people continue to repeat comments like this?

The Canadian government has already said that they wont do anything to prevent a take over of RIM.

RIM sale would not be blocked by Ottawa - Business - CBC News

First off, that article is a year old. Second, any foreign purchase of a Canadian company of this size is looked at, and can be blocked, by the govenment. If it's not in the best interest's of Canada, they can block it. They blocked the purchase of Potash Corp a little while ago so they could do the same this time if they chose to do so.

**FlashFlare11** · 01-24-2013, 11:12 AM

How much does RIM actually want to exit the hardware business? I've always thought of this as a last resort if BB10 isn't successful on RIM's hardware. I mean, aren't a lot of current BlackBerry users just that because of the hardware?

**bk1022** · 01-24-2013, 11:17 AM

Originally Posted by cjcampbell

First off, that article is a year old. Second, any foreign purchase of a Canadian company of this size is looked at, and can be blocked, by the government. If it's not in the best interest's of Canada, they can block it. They blocked the purchase of Potash Corp a little while ago so they could do the same this time if they chose to do so.

Anyway, RIM's value would suffer if too much of it landed in Chinese hands. Governments that favour BlackBerry for security would drop RIM faster than a knife fight in a phone booth. More likely, Lenovo wants to deal with RIM or purchase part of RIM. As others pointed out, IBM wants some enterprise services IP. I'm sure other companies would step in and start making bids if reorg action looked like it was starting to happen.

**Saiga** · 01-24-2013, 11:17 AM

Originally Posted by cjcampbell

First off, that article is a year old. Second, any foreign purchase of a Canadian company of this size is looked at, and can be blocked, by the govenment. If it's not in the best interest's of Canada, they can block it. They blocked the purchase of Potash Corp a little while ago so they could do the same this time if they chose to do so.

First off, I know when it was written. Second, I never once said they couldn't. Did I say they couldn't? Nope, not once! I said that they said they wouldn't. And reading comprehension skills would prove that statement correct.

Again, the Canadian government has already said that they will not prevent a take over a RIM. What makes you think they've changed their mind about it? Does the Canadian government need to post monthly statements about if they would allow or block a RIM take over now? I don't think so. In my opinion their first statement was sufficient.

**phinsphan** · 01-24-2013, 11:17 AM

Lenovo isn't big enough to take all of RIM. It also completely destroys their reputation for enterprise and governement overnight. Simply not happening.

On the other hand if they wanted just the hardware division that would make a lot more sense. Lenovo obviously has a precedent in buying out the hardware business of IBM in 2005. But that gave them branding, exposure and design concepts. I'm not really sure if buying RIMs hardware division makes sense since they are already established as Lenovo, but perhaps for the IP and design concepts it might make sense at the right price.

However, more recently Lenovo has stated they intend to make purchases in IT services and software. They followed that up by buying two software companies. I'm not sure they would be looking at the hardware business, but you never know.

One thing is for sure. If they are looking at the software side it isn't happening. Perhaps a JV with RIM has been discussed but I'm not sure what would be in it for Lenovo except for exclusivity and typically you wouldn't make that decision on a platform that hasn't even been launched yet unless RIM was the one offering cash a la Microsoft to Nokia.