RIM eyes investment bankers: First step to a sale?

Summary:RIM may hire investment bankers to explore strategic options. Can it sell itself before the ship is steady?

Research in Motion is reportedly prepping to hire bankers to explore strategic alternatives.

According to Bloomberg, RIM is looking for an advisor to explore options, which typically include a sale or restructuring.

Analysts have been speculating on RIM's breakup value for months, but the hang-up is often the same. RIM needs to steady its smartphone lineup and demonstrate the staying power of its next-gen operating system before buyers become interested.

For instance, Northern Securities analyst Sameet Kanade recently said in a research note that no buyer will emerge until RIM steadies the ship. In the meantime, Kanade gave RIM a $7 price target and a sell rating. RIM is nearly double Kanade's target right now.

However, new CEO Thorsten Heins has said that he was open to options. Those options could involve partnering on consumer applications, licensing its enterprise software and intellectual property as well as a sale.

The news comes as RIM disclosed in a recent filing that its hardware unit may be losing money, according to a Jefferies analysis.

Related:

RIM 'considers' sale options: Should Apple buy BlackBerry?

Topics: Security, BlackBerry, Mobility

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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