The best opportunity for Microsoft tobecome the biggest player in mobile has arrived with the fall instock prices of Research in Motion. According to Bloomberg, the stockprice of RIM has fallen abruptly which makes it an ideal investmentfor Microsoft.
Research In Motion Limited (RIM)is actually a Canadian firm that works in telecommunication industryand is widely known as the developer of BlackBerry Smartphone.Besides, Blackberry RIM has previously worked in collaboration withRAM Mobile data and Ericsson. RIM has already released an assortmentof products that work on numerous devices working on GSM, CDMA andiDEN networks. According to the May 2010 stats, the RIM OS holds atleast 10.4% of the Smartphone operating system market.
Bloomberg in its reports said,“Research In Motion Ltd. (RIMM) has lost so much value that anacquirer could pay a 50 percent premium and still buy the BlackBerrymaker for a lower multiple than any company in the industry.
RIM, once worth $83 billion, fell morethan 80 percent from its record three years ago as Apple Inc.(AAPL)'s iPhone and Google Inc. (GOOG)'s Android platform siphonedoff smartphone customers. The Waterloo, Ontario-based company,which plunged last week after saying quarterly sales may drop for thefirst time in nine years, closed yesterday at $25.89 a share, or 4.7times earnings next year. That's less than anycommunications-equipment provider, according to data compiledby Bloomberg.”
In an interview with Bloomberg, ScottSutherland at Wedbush Securities Inc. in San Francisco told thatanyone who would buy RIM shares including Microsoft wouldautomatically increase the market value of the company and establishits strong position in the Smartphone market as well.
Sutherland further told that,purchasing RIM would be extremely profitable to Microsoft. Heexplained that purchasing RIM would help it in establishing twodifferent kinds of Smartphone lines. Microsoft can use the first linefor commercial purpose for RIM while other line can be used for itsown Windows Phone 7 customers. As a matter of fact, Microsoft hasalready signed a deal with Nokia which clearly suggests the company’sinterest in Smartphone industry. Moreover, striking a deal with bothRIM and Nokia would surely enhance the business of the company.
However, Scott Sutherland added that hedoesn’t expect Microsoft to come on board and buy RIM outright. Hesaid that Microsoft has blended the Windows strategy in everything itdoes and therefore doesn’t appreciate other businesses like RIM,which do not come into this category. Yet he stressed again thatbuying RIM would surely be a profitable disposition for Microsoft andwould help it in getting established as a promising mobile player.



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