Struggling Canadian telco Research in Motion (RIM) is exploring the possibility of splitting its business in two in a bid to change its fortunes, according to The Sunday Times.
RIM is considering selling off its handset division, with Amazon and…
Struggling Canadian telco Research in Motion (RIM) is exploring the possibility of splitting its business in two in a bid to change its fortunes, according to The Sunday Times.
RIM is considering selling off its handset division, with Amazon and Facebook reportedly potential buyers, the article stated. This would leave the telco with its messaging network that it could either license out to rivals, or sell, meaning the company would sacrifice its independence.
The company hired JP Morgan and RBC Capital Markets last month to explore strategic alternatives. RIM shares have dropped from C$148 (US$144) in 2008 to C$10.12 (US$9.87) at close last week. RIM’s stock has fallen 70% over the last 12 months and the company posted a net loss of US$125m in March.
Canadian activist investor Jaguar Financial has been calling on RIM to sell or break up the company since September 2011. It also demanded previously that RIM should consider divesting its patent portfolio.
Another option could be for RIM to seek sanctuary with a bigger company, such as Microsoft, that could acquire a stake in the Blackberry maker.
In December last year, months before RIM announced its strategic review, it had been reported that Amazon had considered a potential acquisition of RIM, but that, at the time, the company was rejected.
