10-29-09 02:31 PM
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  1. dcgore's Avatar
    On Insider

    Microsoft Should Buy Research In Motion (MSFT, RIMM)
    Dan Frommer|
    PrintTags: Mobile, Big Tech, Microsoft, Research in Motion


    MSFT Oct 9 2009, 12:57 PM EDT
    25.55 Change % Change
    -0.12 -0.47%

    RIMM Oct 9 2009, 12:57 PM EDT
    69.34 Change % Change
    +0.68 +0.99%
    If Microsoft (MSFT) is going to make mobile a big, profitable business it needs to do better than the Windows Mobile updates that Steve Ballmer announced last week.

    So what's the next step?

    Microsoft should buy Research In Motion (RIMM), the company that makes BlackBerry smartphones.

    RIM shares fell another 4% today, and have lost about a third of their value this month. With RIM's market cap down to around $21 billion, Microsoft might be able to get the deal done for $35 billion.

    Why buy RIM?

    The smartphone market (and ultra-mobile computing in general) is growing.
    RIM has a higher market share than Microsoft, and it's growing. Microsoft's is shrinking.
    RIM has a huge enterprise business with a high cost of switching, one that complements Microsoft's enterprise business. Microsoft should own that business.

    RIM's products are, in many respects, better than Microsoft's.
    But the best reason for Microsoft to buy RIM is that RIM has a better mobile business -- collecting revenue from BlackBerry device sales and service fees, instead of just software licensing fees.

    RIM, for instance, gets several hundred dollars in revenue for each BlackBerry sold, plus BlackBerry email/Web service fees. Microsoft, on the other hand, has stuck itself with a lousy business selling Windows Mobile operating system licenses for $8 to $15 per phone, according to research firm Strategy Analytics.

    So while analysts expect RIM to top $14 billion in revenue next fiscal year, Microsoft will be lucky to reach $400 million in Windows Mobile revenue (30 million Windows Mobile licenses at an average $12 a pop). That's couch change for Microsoft, whose revenues should top $60 billion this year.

    Sure, this would be a tricky deal to integrate, and there are a lot of big decisions to make. Microsoft will eventually have to pick one software platform -- Windows Mobile or BlackBerry -- and stick with it. It might have to abandon dozens of partners. It might blow up.

    But Apple (AAPL) and RIM have shown that owning both the hardware and software platforms make for better mobile products. And Microsoft has enough to lose -- to Apple, Google (GOOG), etc. -- to avoid being a weak player in what could be the next major platform war. Meanwhile, RIM has today what could take Microsoft many years to build -- a real, big, mobile business.

    And why should RIM do this deal?

    Because smartphones have become a waltz of elephants. With Apple, Google, Microsoft, Nokia, and other giants in the market -- and RIM trying to win the hearts and minds of consumers -- having the deep pockets and global reach of Microsoft behind it would be a major asset. And direct access to the world's dominant desktop operating system could potentially give Microsoft-RIM phones an advantage over rivals.

    If RIM doesn't execute perfectly over the next three years, it could become the next Palm. (Before the Pre.) If it has the full weight and resources of Microsoft behind it, meanwhile, it can afford to ramp up its investment without killing its stock... and fight off increasingly powerful competition.
    10-09-09 12:20 PM
  2. avacomputers's Avatar
    Would you buy a Microsoft Blackberry?

    Posted from my CrackBerry at wapforums.crackberry.com
    10-09-09 12:24 PM
  3. Spawn12's Avatar
    Oh **** no!!!...last thing i need or want is M$ to royally screw up RIM...i mean look at Windows Mobile OS...possibly the worst OS i have ever had the misfortune of using and administering....thank god my boss saw sense and went with BB's and BES...much easier to admin than that pile of stinking dog poo that is Winmo.

    Please please RIM do not sell out to M$...they will only destroy what you guys are good at...effective business communication tools/devices.
    10-09-09 12:25 PM
  4. R.Burns's Avatar
    Microsoft has their own smartphones...STAY AWAY!! hahah I HATE WM based devices....like the T-mobile Dash.....the T-Mobile Wing....THe T-mobile MDA....well maybe it was an HTC or t-mobile issue....STILL NO! Keep your jaws off my blackberry m$
    10-09-09 12:26 PM
  5. Ami.'s Avatar
    I will jump ship faster than people can blink.
    I will go phoneless, no joke. People would have to get me on Google Voice instead.
    10-09-09 12:26 PM
  6. sphynx's Avatar
    oh no... NEVER A MS BLACKBERRY
    10-09-09 12:28 PM
  7. trucky's Avatar
    Hahaha, that's too funny... I'm thinking bluescreen of death for the bb
    10-09-09 12:28 PM
  8. R.Burns's Avatar
    So far a Unanimous **** NO! Thats good to see!
    10-09-09 12:30 PM
  9. SBerryTour's Avatar
    That would be the beginning of the end. Apple would love that.
    10-09-09 01:25 PM
  10. NoahFecks's Avatar
    M$ buying out RIM, now there's a step backwards right into the dark ages...
    10-09-09 01:28 PM
  11. papped's Avatar
    Other than for MS to remove competition (and that would be one **** of an expense to do so AND it would open the doors for other OSes as well), seems completely pointless...
    10-09-09 01:33 PM
  12. mciriello's Avatar
    NOOOOOOOO! Never.
    10-09-09 01:36 PM
  13. Laura Knotek's Avatar
    MS needs to stick to their PC software and XBox software. Their mobile phone software and MP3 players stink.
    10-09-09 01:36 PM
  14. russnash's Avatar
    PLEASE no!

    If Microsoft wants to buy another company, they should buy into the vacuum cleaner business. Then they would be selling to a client base that expects their products to suck.

    Posted from my CrackBerry at wapforums.crackberry.com
    10-09-09 01:45 PM
  15. mrking.id's Avatar
    Christ I hope not. The BB would die as we all know M$ would F*&#@ it up.
    10-09-09 01:48 PM
  16. Mycko809's Avatar
    why would you every want a Microsoft BB ?
    10-09-09 02:01 PM
  17. ctylerforrest's Avatar
    HAHAHAHAHAHAHAHA!!!

    Are you Kidding me!?!?!?!?!

    No way should Rim Sell to MS. Who cares if MS wants to buy RIM.

    If RIM wants to Integrate and Partner with MS (which wouldn't strategically be a bad idea - theoretically speaking) I say they save themselves the hassle and just take recommendations from MS on what BUGS they should start adding to their software, and how they can most effectively drive people nuts by only offering tech support in support line items on the internet.

    NO WAY!
    Last edited by amazinglygraceless; 10-09-09 at 04:51 PM. Reason: profanity
    10-09-09 02:15 PM
  18. Cyrilmak's Avatar
    RIM would NEVER sell to MS. If they did I'd jump ship
    Last edited by amazinglygraceless; 10-09-09 at 04:52 PM. Reason: profanity
    10-09-09 04:46 PM
  19. decolur455's Avatar
    I'll have to pull my old bag phone out of the junk closet if that ever happens!
    MS/RIMM 1
    **** No! 18
    Last edited by decolur455; 10-09-09 at 06:28 PM. Reason: edit
    10-09-09 06:26 PM
  20. juliankueh's Avatar
    Oh **** no!!!...last thing i need or want is M$ to royally screw up RIM...i mean look at Windows Mobile OS...possibly the worst OS i have ever had the misfortune of using and administering....thank god my boss saw sense and went with BB's and BES...much easier to admin than that pile of stinking dog poo that is Winmo.

    Please please RIM do not sell out to M$...they will only destroy what you guys are good at...effective business communication tools/devices.
    I agree whole heartedly and extremely well said.

    Posted from my CrackBerry at wapforums.crackberry.com
    10-09-09 06:33 PM
  21. DarkShadow04's Avatar
    PLEASE no!

    If Microsoft wants to buy another company, they should buy into the vacuum cleaner business. Then they would be selling to a client base that expects their products to suck.

    Posted from my CrackBerry at wapforums.crackberry.com
    good god....this was funny as ****!!!!!
    10-09-09 07:09 PM
  22. mconk's Avatar
    Lmao-agreed w/everyone else!

    Posted from my CrackBerry at wapforums.crackberry.com
    10-09-09 07:11 PM
  23. dcy4pres's Avatar
    Oh **** no!!!...last thing i need or want is M$ to royally screw up RIM...i mean look at Windows Mobile OS...possibly the worst OS i have ever had the misfortune of using and administering....thank god my boss saw sense and went with BB's and BES...much easier to admin than that pile of stinking dog poo that is Winmo.

    Please please RIM do not sell out to M$...they will only destroy what you guys are good at...effective business communication tools/devices.
    I agree 100%, I was going to post, but you said it for me
    10-10-09 12:45 AM
  24. threader26's Avatar
    That's the worst idea I ever heard, wm is a piece.

    Posted from my CrackBerry at wapforums.crackberry.com
    10-10-09 04:18 AM
  25. Dr.Sadistic's Avatar
    PLEASE no!

    If Microsoft wants to buy another company, they should buy into the vacuum cleaner business. Then they would be selling to a client base that expects their products to suck.

    Posted from my CrackBerry at wapforums.crackberry.com
    That's awesome!
    10-10-09 05:31 AM
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