Is Research In Motion foolish or do they have something up their sleeves? The BlackBerry maker is reported to have turned down interest from Amazon, Microsoft and Nokia of a possible acquisition.
Earlier, it was reported by Reuters that sources have told them that the Canadian smartphone and tablet maker have had talks with Amazon for a possible acquisition. Reuters reports that there were “takeover overtures” initiated by Amazon and that RIM favored fixing their problems on their own.
Citing people “with knowledge of the situation”, Reuters says that RIM has “turned down takeover overtures from Amazon.com Inc and other potential buyers because the BlackBerry maker prefers to fix its problems on its own.” With the ongoing exodus of users from BlackBerry, you have to wonder is this the right move for RIM.
Rumors of a takeover of RIM have been swirling around for a long time. I’ve written in the past that RIM may become a Microsoft company.
Reuters echoes this as it also reported that there were other companies interested in buying RIM. One of those companies is Microsoft, according to a report from The Wall Street Journal.
Furthermore, Nokia (which, by the way, was also previously rumored to be in talks for a possible acquisition by Microsoft) reportedly also made overtures to RIM, according to the Journal.
And RIM was also seriously considering an acquisition. It’s reported that the company even hired an investment bank to consider the offer made by Amazon. If it does its due diligence, that same investment bank may have also looked at possible takeovers by Microsoft and Nokia.
More and more, it seems that RIM is getting more and more lost. Why? Because the company is declining and its leadership is refusing help. It also appears to outsiders that there is somewhat of a “we’re too big to fail” attitude at play here. It has been declining since I wrote this piece and it has been declining fast. And still, the company seems to be not that worried. Imagine a $911 million (Yes, that’s real and not just symbolic) decline in profit for the third quarter compared to the same period last year. They need help.
Its co-CEOs have slashed their salaries. But with declining profits, market share hemorrhage and delay after delay with each quarter that passes, their $1-per-year salary each may be all that they are worth. Don’t get me wrong, they’re probably great guys and brilliant during their day (they built RIM after all) but their day may now be in the past.
RIM needs to get its act together. Hey, more competition in the tech industry usually means more innovation and better products to choose from. I’m all for that.
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