RIM looking to Samsung for bailout?

RIM looking to Samsung for bailout?

Summary: UPDATE 2: Samsung has announced publicly that it has not considered nor is it interested in buying RIM, according to Reuters.

SHARE:

UPDATED: see below.

Reports are circulating that Research in Motion, only days after it hired Goldman Sachs to field potential buyout bids, is looking to Samsung as a potential buyer of its BlackBerry smartphone and tablet range.

A source speaking to BGR hints that Samsung could be the front-runner in a bailout of the BlackBerry maker.

Seeing as it's clear that RIM is looking for an sell-off rather than digging its head further into the sand, the company at least is acknowledging the fact it is up the creek without a paddle.

It could be sold off for between $10--$15 billion price range, but it is not clear what exactly will be bought, or if anything will even be up for sale. Seeing as shareholders agree that the current share price should be a lot higher, it is understood that the co-chief executives are still asking for too much.

It's entirely likely, but call me a sceptic: I don't think it could or would ever happen.

The mobile network executives do not think Motorola or RIM would survive in a world where Google has yet another monopoly. Neither does ZDNet's Jason Perlow, as he discussed RIM's chances in the smartphone playing field after Google's $12.5 billion acquisition of Motorola.

It would not be a far off thought for Samsung to acquire the patents or the infrastructure. Samsung may be looking for other sources of revenue in light of not only the Google-Motorola merger, but also the Apple patent ding dong.

The patents and intellectual property alone would bolster Samsung's portfolio, allowing it to really take on Apple in the messaging department. Since Apple's iMessage release as part of the iOS 5 giveaway, Samsung could take the patent battle to the next level by legitimately acquiring valuable property that Apple would kill for.

But would Samsung want the overheads of running and maintaining the global backend secure messaging infrastructure that arguably RIM (and secure communication users) hold close to their chests?

I doubt it. I do see BlackBerry Messenger being a key component to the consumer end-user market. But if Samsung really wants to splurge, it could always project a long-term strategy for the infrastructure element. But Samsung already has the smartphone hardware market in the bag, and is already in Google's good books by pushing Android to tens of millions of Americans.

In my heart, it still makes logical sense for Microsoft to acquire the infrastructure, even though the vast majority would probably disagree.

Or, we could just let Canada have it, and nationalise the lot. Canada or Samsung? Actually, I think I know which I would rather place my bets on. No offence, Canada.

UPDATE: RIM's shares were up by over 10 percent by early afternoon, indicating that the markets are looking favourably on a buyout from Samsung.

UPDATE 2: Samsung has announced publicly that it has not considered nor is it interested in buying RIM, according to Reuters.

Image credit: CNET, Google.

Related:

Topics: Samsung, Mobility, BlackBerry, Security

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

6 comments
Log in or register to join the discussion
  • Being Canadian ...

    ... I'd love to see the Government acquire it to increase revenues, and lower taxes, but lets face it, the lower taxes part will never happen ... plus, the Feds used to own Petro Canada until they sold that off, as well as the only Toll route in Canada (ETR 407), and there have been talks about Ontario Selling the LCBO (Liqour Control Board of Ontario) to a private company ... some times you have to wonder ...

    Ludo
    Ludovit
    • RE: RIM looking to Samsung for bailout?

      @Ludovit
      Also don't forget about Nortel... Most of the patent portfolio has been sold to American companies now... I can almost sense another great Canadian brain drain is coming.
      Samic
  • Licensing of BlackBerry 10 is the most likely outcome, not an outright sale

    ...Jefferies raised its price target for RIM shares to $17 from $13.50

    http://finance.yahoo.com/news/Research-Motion-likely-reach-theflyonthewall-2900864010.html?x=0
    wizec
  • Wow would this be a huge distraction for Samsung. Talk about shooting

    yourself in the foot. I bet Nokia and HTC would love to see this happen.
    Johnny Vegas
  • RE: RIM looking to Samsung for bailout?

    Why not a "back to roots" ? RIM/Ericsson fusion/buy/whateveryoucallit
    Chriz-tian
  • i was going to write something

    then i decided not to waste any more of my time on Zdnet. the rubbish this site posts is astounding.
    happyharry_z