Is Microsoft finally close to snatching up RIM?

Funny story -- we pretty much heard this exact same rumor floating around last August, but given the current economic situation, we're inclined to believe this one a good bit more. A recent Reuters report is pointing out that RIM (like practically every other company right about now) is ripe for the picking, and any outfit with a serious load of cash reserves could get themselves quite a bargain. Given that the Redmond mega-corp has shown interest before (and clearly has plenty of Greenbacks), we were particularly interested in Canaccord Adams analyst Peter Misek's quote: "I'm fairly certain [Microsoft] has a standing offer to buy [RIM] at $50 a share." If you'll recall, RIM's stock sat at $148 per share just four months ago, and now, it's hovering around $60. As expected, Microsoft had no comment on the report, but don't be surprised to see something go down if Wall Street keeps hemorrhaging.

[Via Electronista]

[lindtdale @ Oct 10th 2008 9:39AM]

I think this is great move for Microsoft to buy RIM and solidify itself as the close second in the smartphone arena.

[ZSX @ Oct 10th 2008 10:49AM]

This is undoubtedly good for Microsoft, but bad, I think, for the consumer. On the enterprise push-email front Blackberry is the only major competitor for Exchange. If MS were to subsume RIM this competition, and the innovation which stems from it, would be gone.

[Jash Sayani @ Oct 10th 2008 1:58PM]

Well, Win Mobile is possible on all devices. It can even replace business line Nokia phones, Sony Ericsons... But not RIM !! Because, people are using Blackberry for its Software and applications and NOT for the hardware !! Blackberry Bold has same hardware as some Motrolla Win Mobile 6 phone with QWERTY keyboard... But its the Blackberry services...!!!

[Canoo @ Oct 10th 2008 9:39AM]

Lets say that did happen. What would that mean for future RIM products? Running winmo?

[rock99rock @ Oct 10th 2008 9:44AM]

Im not so sure. RIM has spent their life on the Blackberry OS, they have it down to the "it just works" scale, and then some. Microsoft would be remiss if they were to kill it completely. I do however think that there is the possibility of making it "your choice", with them making either OS available for the same device... considering the beefier hardware that RIM has started implementing on their newer devices.

Either way, it is all intriguing.

[Drew Green @ Oct 10th 2008 9:59AM]

I agree with rock99rock (and hope that he's correct, also). It would be stupid of MS to eliminate the Blackberry OS. Rather than eliminating their competition for WinMo (by eliminating Blackberry OS) they could be enjoying the profits from both. Not to mention that Palm has seen good feedback by allowing consumers to choose between Palm or WinMo on some of their more recent devices.

[tom @ Oct 10th 2008 10:02AM]

Having M$ engineering to learn Java 101

Ohhhh nooooo, the Apocalypse is coming

[Ike Turner @ Oct 10th 2008 10:05AM]

There's no need for the Blackberry OS if this merger was to become true. Just natively incorporate Blckberry Connect into WM7. Voila!
http://na.blackberry.com/eng/ataglance/connect/

[chefgon_ign @ Oct 10th 2008 10:06AM]

Microsoft purchased Danger (creators of the T-Mobile Sidekick) a while back and they have released a few new products since then without WinMo. Microsoft is more interested in getting all of Blackberry's customers than they are with forcing WinMo on everybody, there's pretty much zero chance they would scrap the Blackberry OS.

[rock99rock @ Oct 10th 2008 10:10AM]

@Ike Turner

Not the same experience, at all. The blackberry OS is a package deal, not just service oriented.

[ilh @ Oct 10th 2008 11:36AM]

There's too much in the way of BB specific apps that are really integrated into the BB API that it'd take quite a lot of effort to provide a wrapper for those to work properly with winmo...at least that's what i'll be telling myself in the hope they keep with the BB OS as I don't want to rewrite my work for winmo.

[UnixSystemsEngineer @ Oct 10th 2008 1:51PM]

Who the hell ranked up Ike Turner? The BB is ages ahead of WinMo.

If Microsoft tries to force the BB business onto the WM platform, they shouldn't waste their time buying RIMM @ $50/share. They should just give the money directly to Apple and Google, and cut out the middleman.

[From My Cube @ Oct 10th 2008 9:40AM]

no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no !!!!!!!!!!

[rock99rock @ Oct 10th 2008 9:41AM]

Yes.

[Spanner @ Oct 10th 2008 11:31AM]

You certainly didn't write that on your iPhone

[link12245 @ Oct 10th 2008 12:13PM]

I think the same thing. bbos is awesome. i don't want my curve to bsod ever five minutes.



and before you all start flaming, i know, bsod's are few and far between, it was a joke. get over it.

still i think the bbos is awesome, especially what they're doing with 4.6. i think m$ would be stupid to try to phase it out.

[Cardbored @ Oct 10th 2008 9:40AM]

So.... should I be buying RIM stock?

[7on @ Oct 10th 2008 9:42AM]

If by RIMM stock you mean stocking up on BB OS Blackberrys...

[Chad @ Oct 10th 2008 9:41AM]

that IMHO would be most tragic.

[Backlin @ Oct 10th 2008 9:44AM]

Agreed.

[Ike Turner @ Oct 10th 2008 9:43AM]

If it became true, Steve Jobs would really suffer a heart attack this time!

adds CNN's I-Report RSS's feed to reader....

[Backlin @ Oct 10th 2008 9:44AM]

All of the reports about his death are greatly exaggerated.

[Shenzhov @ Oct 10th 2008 10:15AM]

Steve won't have a heart attack over this, he will throw a party.

Microsoft will do what it always does in this kind of deal. They will take what's good out of the BB and stuff it into the WinMo. There is no way they will abandon their own OS for the BB OS.

They will transition it all to their own OS and con people into continuing to buy the Blackberry. What was a great OS will slowly become the Microsoft bloated, buggy OS.

[Prokanda @ Oct 10th 2008 9:44AM]

oh god no.

I loved the winmo phones that I've owned in the past.... but I love my blackberry and I don't want it to have the same experience. constant mergers/purchases leave no room for separate outfits to innovate.

=(

[nicko.dvz @ Oct 10th 2008 9:44AM]

I think it would be great for consumers. Blackberry OS + WinMo. It'd be great.
Really hoping that Microsoft snatches them up.

[Ben @ Oct 10th 2008 9:53AM]

Are you kidding? Name one thing Windows Mobile has over BlackBerry's OS? My Windows Mobile experience has made me very glad that I own a BlackBerry.

[Xstream @ Oct 10th 2008 11:06AM]

there are many things you could name:
compatibility with more than a hand full of hardware
really good support for developpers
gigs of free and opensource software
extensibility
hand-writing recognition

[Ben @ Oct 10th 2008 12:35PM]

Look, we've seen it plenty of times before... If you want to deliver a good product, you need to design both the hardware and the software (we all know who I'm talking about). Windows Mobile is hit or miss depending on the phone.

RIM's got it nailed. The last thing we want or need -- as average consumers, business people, and just plain people who want reliable, user-friendly smart phones -- is a Microsoft OS on a BlackBerry.

[kal326 @ Oct 10th 2008 9:55AM]

-Updated:
Leaked internal Microsoft documents point to a new project, code named Rim-job.

[Ike Turner @ Oct 10th 2008 9:57AM]

More like" Rimming-Steve Jobs"

[Drew Green @ Oct 10th 2008 10:01AM]

rofl

[bob sakamano @ Oct 10th 2008 9:56AM]

i see a zuneberry phone in the near future

[bob sakamano @ Oct 10th 2008 10:01AM]

... and now i own the domain

[7on @ Oct 10th 2008 11:03AM]

It should just forward to this engadget story.

[iEye @ Oct 10th 2008 9:57AM]

Microsoft touching the BB... iPhone won't even have to compete, just watch the competition decompose...

[noyp @ Oct 10th 2008 12:10PM]

But say, in a few years, apple crumbles like every company, what will you fanbois fanboi next?

[dvsbstrd @ Oct 10th 2008 12:24PM]

nyop,

I'd put my money on New Balance tennis shoes. Probably the velcro kind.

[Hotpants @ Oct 11th 2008 6:18AM]

@noyp

the fanbois won't have to worry about Apple crumbling. Microsoft will just bail them out...again. Ofcourse iEye probably doesn't remember that happening, he too young to remember that.

[MNM101 @ Oct 10th 2008 10:05AM]

NO!... NO!.... NO!... I've been running away from WINMO for years.... they ruined Palm's Treo w/ 700W and now THIS!

Blackberry OS is the SH*T.... What next? Nokia/Symbian?

[chefgon_ign @ Oct 10th 2008 10:17AM]

Microsoft, above all else, knows how to read the market and make good business decisions. Blackberry OS has a (slightly) larger marketshare than WinMo. It would be incredibly stupid for them to kill it and they know that. They don't let their ego get in the way of profit.

If this goes down, expect WinMo to get Blackberry server support and Blackberry OS to get native Windows desktop support. I wouldn't expect a whole lot else to change.

[mnm101 @ Oct 10th 2008 11:26AM]

Doesn't anyone remember when Treo's went for 400, with a contract and 600 without!?

Now they give'm away when you apply for a Visa card! Their shares are still suffering (from $20-30 to $5). WINMO destroyed PALM and they'll do the same to BB.

But I'm sure it's just another rumor.

[chefgon_ign @ Oct 10th 2008 12:14PM]

What does that have to do with anything? Palm wasn't bought by Microsoft, they simply licensed Windows Mobile because PalmOS was no longer holding up in the corporate world and they needed something to keep them afloat while they work on their endlessly delayed Linux OS.

This is a totally different situation. Do you really think that Microsoft wants to buy RIM just so they can self-produce a line of WinMo phones (which they could easily do without buying anybody)? Of course not, they want to buy RIM so they can collect the profits from Blackberry.

[Mike @ Oct 10th 2008 10:02AM]

My finance sucks, so excuse me if this seems like an odd question. Why would the analyst think they'd offer $50 if it's valued at $60? Wouldn't ppl sell at value or higher?

[Adam @ Oct 10th 2008 10:17AM]

I'm guessing that MS is putting that out there betting that with the market as it is since if the market continues to fall, RIMs stock will soon be worth LESS than $50/share. So it's an early out for RIM. Not to mention ... it may end up less than $50/share AFTER a MS acquisition. Either way it's a gamble for both companies but one which MS can afford to make. They are betting that RIM CAN'T afford to continue letting their stock fall.

[Chris @ Oct 10th 2008 11:33AM]

It's a standing offer apparently, so if the stock drops to 40, then MS will say, and now we'll buy for 50.... I believe $50/share is where MSFT has realized it will be beneficial to buy. kind of their highest pay point that they think it's worth it

[Mike @ Oct 10th 2008 10:25AM]

Ok makes sense.
Follow up: why can't RIM afford to let its stock drop so much, are people really going to stop buying Blackberries? It's not like larger organizations or the govt, who can weather this storm, will stop using it will they?

[schmitty338 @ Oct 10th 2008 10:45AM]

@Mike - Low stock prices mean less equity that RIM can borrow against. Less money available means slower growth, higher interest on debts, etc, and that will be risky during a border-line recession where sales will inevitably slow.

At least, that's how I understand it at a basic level.

[Mike @ Oct 10th 2008 11:24AM]

I typically though companies grew on their profits from past ventures. Is that not the case?

BTW this is a nice economics lesson for me.

[CraigJ @ Oct 10th 2008 12:13PM]

RIM will be under $50 next week. which sucks big floppy donkey dick because I bought it at 135.

[schmitty338 @ Oct 10th 2008 12:15PM]

@CraigJ...well then, you sir, are a moron.

RIM isn't Google and they aren't revolutionizing their industry....buying that high could never be a good idea.