RIM mulls banker advice: prelude to a sale?

RIM mulls banker advice: prelude to a sale?

Summary: Research In Motion (RIM) is reportedly prepping to hire bankers to explore strategic alternatives.

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Research In Motion (RIM) 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 break-up value for months, but the hang-up is often the same; RIM needs to steady its smartphone line-up 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 US$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 is open to options. Those options could involve partnering on consumer applications and 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.

Via ZDNet US

Topics: BlackBerry, Legal, Mobility

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  • Well RIM will disappear in time like Palm has, just times have moved on and a great product has lost out to a inferior one. Like Lotus, Wordperfect, Wordstar all lost out to Word etc.
    The same can be applied to WP7 / Nokia if WP7 sales do not take off. Shame as I was looking at buying a Rim phone but not now as I do not want to end up with a dead phone and no support.
    Mudrat70
  • Maybe HP can buy them? ;)
    anonymous