RIM Stock Value Rises With Potential Acquisition Possibility



Written by Roly   //


August 19, 2022   //

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We as consumers, have been swept into a world where corporate market coups are a thing of the norm.  Where there was once room for several leading competitors in the mobile market, it has been slowly dwindling to about two to three leaders.

Apple and Google currently dominate the mobile market  respectively, and with Microsoft slowly maneuvering its attempt to stake a claim in the proverbial pie.  As of this week, Motorola Mobility has been swept under the wing of Google Inc and HP is ceding its place in the hierarchy of mobile OS devices.  Which leads us to a once former powerhouse, RIM (Research In Motion), the makers of the Blackberry and Playbook series of devices, and where it stands in the current market war.

In the present state of affairs of the mobile market, smartphones are set to double in sales by the year 2015 and this makes the acquisition of a company like RIM all the worthwhile.  Currently, RIM is valued at $25 billion (after yesterday), but an 83% fall in value due to Apple and Google has led the once mobile giants to lose their previous $83 billion worth.  RIM has seen a steady decline especially due to the Android platform’s low entry price point, where the once low cost curve is now being dominated by equally priced if not cheaper Android phones and also sales in the highs to Apple’s niche crowd of supporters.

The addition of Motorola Mobility has done nothing but boost the value of RIM in the sense of the company now being a more appealing investment for potential buyers seeking to bolster their gadget, operations and patent arsenal.  The RIM line of products has the benefit of already using its own brand of OS, a strong asset to help with convincing a buyer, also the appeal of having a strong foundation base within the corporate business savvy market.

The purchase of RIM’s patents would be worth $5 billion alone, according to analyst Shaw Wu of Sterne Agee & Leach Inc, based off of the value of the Nortel and Motorola acquisitions by the two mobile giants Apple and Google.  At a current value of $52 a share, double the value of RIM stock yesterday, the investment would benefit companies like Samsung especially after the Motorola Mobility purchase, and also Microsoft with devices like Blackberry which may strengthen their WP7 system output (similar to their collaboration with Nokia devices, but with an actual ownership of the mobile device patent, etc.).

With the current situations consistently changing, it has yet to be seen what is the next move in the mobile market battlefield, but what is a resounding truth, is the fact of the interesting series of events unfolding and what may happen to once mobile giant RIM. 

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