[bluetroll]

Microsoft said to Invest $3.5 Billion in Research in Motion
microsoft

The rumor of a Microsoft and Research In Motion deal is circling back around. New chatter suggests Microsoft is prepared to make a $3.5 billion investment in Research in Motion, according to sources. Apparently, the two companies have been frequently mentioned in potential deals over the past few months.

AOL’s announced sale of 800 patents to Microsoft on Monday, raised interest in RIMM’s patent portfolio. Neither party would comment on the rumor. We’ll keep you updated should any other news arise.

source: N4BB Microsoft said to Invest $3.5 Billion in Research in Motion | N4BB - News for BlackBerry - forums, leaks, rumors, videos, faqs, reviews

[kg4icg]

If true, maybe Microsoft and RIM has something in the works coming down the line when BB10 launches, maybe Office integration. I'm just guessing of course.

[purijagmohan]

Office integration may not need MSFT investment.RIM would love to offer that from it's platform.Can't think of a obvious reason.May be NOC integration with Windows Phone OS.That would be a huge shot in the arm for both Windows Phone and RIM.

BBM, BBM Video chat & Skype integration across Blackberry and Windows Phone OS? That would be huge for both platforms.

[Sith_Apprentice]

I dont think that RIM giving up its last major advantage to Microsoft would be a good idea. At that point, why would you need to buy BlackBerry devices anymore?

Office integration would be an excellent place to start, but the NOC would be an unlikely bargaining chip.

[BlackBerry Guy]

One of the things Steve Jobs did when he trying to re-vitalize Apple back in the late 90's was make a deal with the Microsoft devil. Maybe there's something magical in MS bucks

Sent from my BlackBerry 9900 using Tapatalk

[Sith_Apprentice]

One of the things Steve Jobs did when he trying to re-vitalize Apple back in the late 90's was make a deal with the Microsoft devil. Maybe there's something magical in MS bucks

Sent from my BlackBerry 9900 using Tapatalk

Its that there was also a software deal in it that brought Office to Mac. And 3.5 billion would be a VERY large investment in RIM, half its market cap or more.

[Mikey_T]

Office on BB 10? Yes Please.

BBM on Windows Phone? Yes Please.

[Thunderbuck]

One of the things Steve Jobs did when he trying to re-vitalize Apple back in the late 90's was make a deal with the Microsoft devil. Maybe there's something magical in MS bucks

Sent from my BlackBerry 9900 using Tapatalk

That was a relatively small deal ($250 mil) that was more of an expression of support on Microsoft's part.

$3.5 bln is more than half of RIM's current market cap. I guess my question would be, "what for?" As in, "what would RIM do with that much cash and what is Microsoft getting in return?"

[adrenaline_x]

Yup. If the Investment of 3.5 Billion pans out and Blackberry Rebounds as a brand, MS will make money on their investment. The inner workings of the agreement would be interesting to see if it is true.

All speculation of course, but teaming up with a Power House Like MS is not a bad idea as long as it doesn't mean a sale to MS for personal reasons.

I would also like to see Blackberry Team up with Samsung to integrate BB10 devices with TVs seamlessly to share content from your devices to their tvs. If they can create a standard that allows all tsv to connect to the Blackberry / Android devices that would be a huge plus for all consumers.. DLNA is great, but being able to play games wireless like airplay would be an awesome feature. Standardize it and patent it!

[Superfly_FR]

[...] That was a relatively small deal ($250 mil) [...]

Not that small ... it was like 20 years ago (so you have to count in current currency : 1979 $ 250 mil is +/- equivalent to 2012 $ 900 mil) plus the "size" of companies (capitalization) weren't what they are today, especially in tech areas.
forget it, see bellow #14

[Superfly_FR]

The day I bought my PB (last summer) , I related that there was an MS official around and he was clearly insinuating that RIM and MS will tightly cooperate. He also clearly pointed out the PB as the "unique valuable professional product that will last" and gave me no other choice (even against MSW powered ones !).
Both companies have :
1/ Commune "cultural" enemies (the "all free world" and the "fruit world")
2/ Commune "cultural" AND technical knowledge of the companies market
3/ Mutual interest in promoting their own (complementary) technologies (server-side: Active-xxxx <==>BES/Fusion and client-side : BBM <=> Live )
4/ Lots of patents that could avoid headaches in the near future.

But this is a rumor ... talking about stocks and cash ...
Yet, don't forget : http://business.financialpost.com/20...e-partnership/

[anon(4018671)]

Interesting rumour, Nokia only got $1B

[Superfly_FR]

I'll suggest this blog entry : RIM: Does Microsoft want to invest in the BlackBerry? | FP Tech Desk | Financial Post ... I must say I agreed most of its content. Not only about MS but also Samsung ...

And now the "are you crazy ?" question : what IF this was a threesome game ?

[Economist101]

Not that small ... it was like 20 years ago (so you have to count in current currency : 1979 $ 250 mil is +/- equivalent to 2012 $ 900 mil) plus the "size" of companies (capitalization) weren't what they are today, especially in tech areas.

It was 15 years ago, not 20, and 1979 (33 years ago) is a bit far to make a fair comparison.

Also, Apple's market cap in 1997 was $2.3 billion (Market Capitalization for Apple (AAPL) 1997 - Wikinvest), making the $150 million investment (Microsoft to invest $150 million in Apple - CNET News) less than 10% of the cap that year (150/2300 = 0.065, or 6.5%).

RIM's current market cap is less than $7 billion, meaning a $3.5 billion investment would be more than half the cap based on today's prices.

[Superfly_FR]

It was 15 years ago, not 20, and 1979 (33 years ago) is a bit far to make a fair comparison.

Also, Apple's market cap in 1997 was $2.3 billion (Market Capitalization for Apple (AAPL) 1997 - Wikinvest), making the $150 million investment (Microsoft to invest $150 million in Apple - CNET News) less than 10% of the cap that year (150/2300 = 0.065, or 6.5%).

RIM's current market cap is less than $7 billion, meaning a $3.5 billion investment would be more than half the cap based on today's prices.

Sorry, I'm getting dyslexic ... 1997 ...
so : 1997 $ 250 mil <=> 2012 $ 355 mil. (based on this calculator)
... You killed me (good) on this one. I surrender ! (damm ... this was my first 2K+ post ... arfff)

[Sith_Apprentice]

Only reasons I can see for any large investment (especially this large) in RIM would be
1. Patents (though likely not work 3.5b)
2. Access to the NOC (still likely not worth 3.5b)
3. Bringing BlackBerry to Windows Phone 7/Windows 8. RIM had created virtual BB suites before, I wonder if this would be a step to bringing that back. Currently WP7 is useless in Enterprise, unable to secure it past very basic levels. Bringing virtual BB into the mix (also called BB Application Suite) would give Microsoft a HUGE way in with the enterprise crowd. Mobile Fusion + existing Exchange deployments = huge potential customer base.

[rickbansal]

This is a ridiculous rumor. Microsoft has everything to gain from the demise of RIM so why in the world would they want to save them? Why would they make an "investment" in a competitor? That would like betting against themselves.

[Sith_Apprentice]

This is a ridiculous rumor. Microsoft has everything to gain from the demise of RIM so why in the world would they want to save them? Why would they make an "investment" in a competitor? That would like betting against themselves.

RIMs global market share is WELL above that of Windows Phone, as it is in North America as well. WP7 has no real corporate presence, of which RIM is a staple. WP7 has no real way to be securely managed at an Enterprise level (even with third parties MDM solutions, the APIs are extremely limited). Maybe not worth 3.5b, but definitely worth alot.

[adrenaline_x]

This is a ridiculous rumor. Microsoft has everything to gain from the demise of RIM so why in the world would they want to save them? Why would they make an "investment" in a competitor? That would like betting against themselves.

I think you are looking at the simplistically. If this were true, MS wouldn't of invested in apple.

My guess with the limited amount of information based on a rumor is that MS believes Rim is servery under valued and if/when bb10 launches/is licensed that their investment will make them a massive amount of money when RIMM worth trends upwards!

But is all rumour based on nothing.. Not even a link to an article with the rumour in it.

[Economist101]

I think you are looking at the simplistically. If this were true, MS wouldn't of invested in apple.

MS' investment had as much to do with mitigating antitrust scrutiny as it did aiding a "competitor." Besides, MS didn't view Apple as a competitor at the time, and in terms of computers you could argue Apple still isn't really a competitor. Growing faster and more profitable in terms of units sold, but still with a small slice of the overall market. Apple has never really made a comeback in computers, which is one of the reasons I doubt RIM will make a significant comeback in phones. To me the question is what RIM's iPod, iPhone and iPad will be.

[madman0141]

One of the things Steve Jobs did when he trying to re-vitalize Apple back in the late 90's was make a deal with the Microsoft devil. Maybe there's something magical in MS bucks

Sent from my BlackBerry 9900 using Tapatalk

We may already be in bed with the Devil

[ccbs]

I think you are looking at the simplistically. If this were true, MS wouldn't of invested in apple.

My guess with the limited amount of information based on a rumor is that MS believes Rim is servery under valued and if/when bb10 launches/is licensed that their investment will make them a massive amount of money when RIMM worth trends upwards!

But is all rumour based on nothing.. Not even a link to an article with the rumour in it.

First, Microsoft is not a hedge fund. Second, if Microsoft is investing for potential stock gain, they might as well just take over 50% ownership and call the shot at RIMM. Besides, the chance of bb10 being successful is still very low. Most people , outside of the Crackberry world, expect it to be overwhelmingly mediocre. If this rumor is true, it has to be some asset acquisitions. Microsoft won't throw 3.5Billion for token of trust. Microsoft is in a similar position fighting for their mobile platform to be sticky and it has to be significantly beneficial to them for them to pay 3.5 times the amount they paid to Nokia as a strategic partner.

[undone]

I could see paying RIM to BES secure there windows phone.

[anon(757282)]

To me the question is what RIM's iPod, iPhone and iPad will be.

The first of these devices is PlayBook. I will pause as you stop laughing... Yes, PlayBook is much more than another tablet. It was introduced too early in a brutal environment, but it has strong hardware, a robust OS, uses essentially the same OS as BB10 and links seamlessly via Bridge, and it is part of the secure corporate system.

Remember, RIM has acknowledged that others lead the consumer market. So RIM is focusing on the solutions and partners to own the corporate market, where they are already strong. Sure there is competition, but RIM is strong here and solutions like PlayBook for managers and employees to use, securely linked to phones and computer networks. Maybe running MS office suite and Sharepoint clients. Leave apple for the masses who play bird games and want bargain basement prices and free apps.

[Economist101]

The first of these devices is PlayBook. I will pause as you stop laughing... Yes, PlayBook is much more than another tablet. It was introduced too early in a brutal environment, but it has strong hardware, a robust OS, uses essentially the same OS as BB10 and links seamlessly via Bridge, and it is part of the secure corporate system.

The pause is appreciated, but if you really want to draw a comparison here you'd be better off finding an earnings report in which Apple reported a $485 million writedown on the iPod than suggesting that any moment now the PlayBook will become a hit. As for launching into a brutal environment, RIM chose to build the product and chose its release timing, so it's not as though RIM ended up in the spot it's in via lottery.