US tech giant Microsoft is prepared to invest US$3.5bn in struggling Canadian handset maker RIM, according to a rumour reported by the Benzinga blog.
Benzinga reported, with reference to unnamed sources but describing it as a rumour, that AOL’s…
US tech giant Microsoft is prepared to invest US$3.5bn in struggling Canadian handset maker RIM, according to a rumour reported by the Benzinga blog.
Benzinga reported, with reference to unnamed sources but describing it as a rumour, that AOL’s agreement to sell over 800 patents to Microsoft for more than US$1bn had increased the interest in RIM’s patent portfolio.
Microsoft and RIM declined to comment to TelecomFinance.
Following reports in late March that Microsoft could be a potential suitor for RIM, Bernstein Research analysts described a Microsoft takeover as “highly unlikely”.
“Windows phone is moving in the right technological direction and RIM does not offer much software or innovative technology that [Microsoft] wants,” Bernstein said at the time.
The analysts did suggest that Microsoft could find RIM’s intellectual property (IP) valuable, but in that case Microsoft “would more likely want to acquire the company at the value of the IP which is far less than the company is currently trading at”.
Senior Bernstein analyst Mark Moerdler confirmed to TelecomFinance today that the same concerns could exist with a Microsoft investment in RIM, as opposed to a full acquisition.
Microsoft is not the only company being linked with RIM in the media.
In a report yesterday, Canadian newspaper the National Post referred to previous rumours that Korean vendor Samsung could be interested in making a US$1.5bn investment in RIM.
In December 2011, Reuters cited people with knowledge of the situation as saying that RIM had rejected takeover overtures from online retailer Amazon and other potential buyers.
Meanwhile, in March this year, RIM reported a net loss of US$125m for the quarter up to 3 March 2012. It shipped around 11.1m Blackberry smartphones in the same quarter, a fall of 21% on sales in the previous quarter.
RIM’s CEO Thorsten Heins said at the time that RIM would start a “comprehensive review of strategic opportunities”, which could include partnerships, JVs and other means to leverage the company’s assets and maximise value for shareholders.
In a subsequent call with analysts, Heins said that the company could potentially consider a sale, but “it is not the main direction we are pursuing right now”.
