RIM share plunge could prompt Microsoft bid

By CoolCatBad
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Grand Master

CoolCatBad

Posted
Posted

http://www.forbes.com/reuters/feeds/reuter...R-ANALYSIS.html

http://finance.google.com/finance?client=news&q=RIMM

TORONTO (Reuters) - The recent plunge in the market value of BlackBerry maker Research In Motion (nasdaq: RIMM - news - people ) could leave the company vulnerable to a takeover from a well-capitalized buyer such as Microsoft Corp.

RIM's shares, which were worth more than $148 on the Nasdaq market just four months ago, now are trading around the $60 mark amid the U.S. financial crisis and margin pressures the company is experiencing because of expenses related to launching new smartphones.

"RIM is a massive strategic fit" for Microsoft, said Canaccord Adams analyst Peter Misek. "I'm fairly certain they have a standing offer to buy them at $50 (a share)."

In that scenario, RIM would have to continue declining to at least $40, thus allowing an offer of $50 to stand as a premium bid.

At current levels of $60 a share, RIM has a market value of about $34 billion. An offer of $50 a share would value the company at just over $28 billion.

Veteran

d3nuo

Posted
Posted

hmm not good. this is one of the few companies that i hope doesn't go into Microsoft unless it's that or close. they're a good company in my opinion (despite the fact that i don't currently own nor have i ever owned a RIM product, although i am considering the Storm.) hopefully their stock goes back up!

Grand Master

Tech Star

Posted
Posted
microsoft aren't really interested in mobile hardware as they state over and over so i would reckon it's unlikely

They already bought Danger (makers of Sidekick), why not RIM?

Anyways as for the shares, the market is going down. RIM and every company should expect their stock price go down.

Grand Master

L3thal Veteran

Posted
  • Veteran
Posted

Why are "analysts" making rumors like this? Microsoft is not going to bid for RIM or anyone else. They just announced a $40b buyback on their shares which will see Microsoft borrowing money for the first time in ages to finance the buyback.

Microsoft is clearly spending its money on itself and they will not bid for RIM. He states that RIM is a "massive strategic fit" for Microsoft but does not explain why. He is a moron and knows nothing.

Grand Master

#Michael

Posted
Posted
Why are "analysts" making rumors like this? Microsoft is not going to bid for RIM or anyone else. They just announced a $40b buyback on their shares which will see Microsoft borrowing money for the first time in ages to finance the buyback.

Microsoft is clearly spending its money on itself and they will not bid for RIM. He states that RIM is a "massive strategic fit" for Microsoft but does not explain why. He is a moron and knows nothing.

So you are telling me that you are better educated on the market than an analyst working at Forbes. I highly doubt it and you made me really laugh at the statement. But I do agree that it would be a good fit. Microsoft has stated that they want to bring the zune interface to a phone. But they have no interested in building their own phones from scratch. What better way to do that then buy out a well known and very established company.

Collaborator

sourc3

Posted
Posted

The reason RIM is a good fit for MS is the use of the Exchange Server. Exchange Server runs on Windows. That means licensing for two big server products. Hence the fit. Microsoft does not care about blackberry, blueberry, whatever device. And yes they are buying back their own shares. Which is a good indicator that Microsoft thinks they will be making some good profit in the years to come. Instead of distributing part of the profit as dividends, they will be able to plow back more of that money back into business. This is usually a good sign of confidence on the company's part.

Experienced

suicide_pact

Posted
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I can just see every time I reboot my BB having to wait to make sure my copy of BB is valid. And then of course if there's a problem the message will be to call Microsoft, meanwhile they'll have your phone locked so you can't make calls.

Rising Star

basix

Posted
Posted
I can just see every time I reboot my BB having to wait to make sure my copy of BB is valid. And then of course if there's a problem the message will be to call Microsoft, meanwhile they'll have your phone locked so you can't make calls.

Yes because this is already standard practice within the already huge clientbase of winmobile devices. Not! Even with modded ROMS floating in the wild MS has no interest in your theories. You should be more worried about the next BB service outage :whistle:

Grand Master

L3thal Veteran

Posted
  • Veteran
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So you are telling me that you are better educated on the market than an analyst working at Forbes. I highly doubt it and you made me really laugh at the statement.

Oh yes, because we all know analysts know everything. Just like the idiot at Goldman Sachs that downgraded the whole steel sector yesterday after the sector has lost 70% of its value in the past 2 months. Lets not mention they rated the whole sector a buy in July when commodities hit a top and now they are downgrading it when we are about to hit a bottom. Very smart, eh?

If you follow the stock market and have half a brain, you will know that a lot of analysts know nothing (notice I said a lot, not all). Just this Wednesday a Citi analyst downgraded GM. Where the hell was this analyst for the past year? He was recommending it in the 40's and 30's and now he downgrades it to a sell when GM is at $5. If you followed these idiots and their recommendations, you would be selling GM at a 80% loss and the steel sector at a 70% loss.

Need I say more?

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