Printable View
http://www.theglobeandmail.com/globe-investor/investment-ideas/three-reasons-why-google-should-acquire-rim-right-now/article2121024/
When I read your original blog about google buying rim few weeks back I was like "that would be fantastic, why nobody thought of that before, but will never happen..." but now... well it just might!
Posted from my CrackBerry at wapforums.crackberry.com
Don't want Google to acquire RIM. I doubt that MS or Apple would let that happen.
That article has some really good points. Glad to see Kevin sparked some real discussion on the topic.
The article is interesting, but only briefly mentions the fact that the takeover of RIM by a foreign company would have to be approved by the Canadian government.
In 2008 the Conservative Canadian government blocked the sale of MacDonald, Dettwiler and Associates to an American company. This was for several reasons, chief among which was because MDA owns and operates Radarsat-2, a surveillance satellite that is used for both civilian research, and by the Canadian military for surveillance of Canada's arctic. The government feared that takeover by a foreign company (even one from an allied nation) could potentially lead to loss of control over the satellite. RIM and its BlackBerry products are used by the Canadian government and its departments due to their reputation for rock solid security. Google is not only a foreign company, but it also does not have this stellar reputation for security. In recent years the US has been far more liberal with their use of wiretapping and electronic surveillance than Canada (though admittedly, Canada is, I'm sure, much more involved than most people believe). Many countries have chosen to use blackberries due to their reputation for security, but Canada is in the unique position to block a potential sale for reasons of national security. If Google were to take over RIM, would they be able to convince the Canadian government that there would be no lessening of this security?
In 2010 the same Conservative government blocked the sale of Saskatchewan's Potash Corp to an Australian company. This was primarily for economic reasons - potential for loss of Canadian jobs, and loss of local control of a valuable Canadian natural resource. If Google took over RIM, what would stop them from moving all of RIM's operations Stateside? Would Google continue to support Canadian Universities and technology startups the way RIM does? Contrary to what some analysts are saying (the same analysts who didn't see the collapse in the US housing market, and subsequent stock-market crash coming), RIM is not on the verge of bankruptcy and any foreign company attempting to take them over would have to prove a "net benefit to Canada" for the takeover to be approved.
Neither one of these arguments on their own may be compelling enough for the Canadian government to block the sale... but taken together?
I'm not an expert in such things, but in my opinion, while from a techie/market analyst point of view it may seem like a likely match, from the point of view of Canada and the Canadian government it seems far less rosy. I'd give such a takeover a 50/50 chance at best of being approved.
Not to mention the Canadian government might block it.