or Connect
AppleInsider › Forums › General › General Discussion › RIM turned down multiple takeover bids despite financial woes
New Posts  All Forums:Forum Nav:

RIM turned down multiple takeover bids despite financial woes

post #1 of 74
Thread Starter 
Research in Motion reportedly turned down offers from Amazon and other potential buyers, and is opting to fix its own problems by leveraging upcoming BlackBerry handsets and existing services.

Citing unnamed sources close to the matter, the Chicago Tribune reports that the embattled BlackBerry maker has turned down takeover offers by Amazon.com and others, choosing to look internally to remedy ongoing losses and a plummeting stock price.

In the last year, RIM has seen a dramatic drop in market value with stock prices falling 77 percent after failed handset launches, poor quarterly earnings and overall weak sales. A previous report noted that the company is now worth less than the estimated value of Apple's App Store.

The Canadian company's decline comes at a time when the worldwide smartphone market is picking up steam with record sales of Apple's iPhone and devices running Google's Android OS leading the way.

According to the sources, RIM is looking to its co-chief executives Mike Lazaridis and Jim Balsillie to halt the company's free-fall by launching new phones, expanding and strengthening assets like BlackBerry Messenger and restructuring. The company could make licensing deals and partnerships, however an outright sale or joint venture are not seen as viable options at this stage.

"They have had approaches from folks who have wanted to have discussions," said one head of technology investment banking at a Wall Street bank. "The issue is it is hard to find a value that makes sense with a falling knife."

RIM Corporate office in Waterloo, Ontario | Source: RIM

Amazon hired an investment bank to put together a merger offer this summer, but the internet sales giant fell short of making an official offer. The two companies are still looking to expand services like last year's service to offer Amazon's music catalog to BlackBerry users.

Although some are calling for the sale of RIM, as a whole or in parts, the BlackBerry maker has made it clear that they do not want to sell or break up the company at this juncture, the sources told Reuters. Following a weak earnings call last week, the board reportedly told Lazaridis and Balsillie to shelve and options for a sale.

"Selling the company or an economic joint venture is probably not in the cards right now," the source said. "Until you stabilize the platform, people are going to be very nervous about spending $10 billion or more."

RIM has suffered some setbacks recently with the newest BlackBerry 10 phones being delayed, poor sales of the company's PlayBook tablet and service outages in the EMEIA region (Europe, Middle East, India and Africa). The ongoing issues would make it difficult for Wall Street bankers to find a buyer even if RIM was interested in selling.

Earlier this year, RIM was pitched to other mobile phone makers like HTC and Samsung, but the companies already have licensing agreements with Google's Android and did not see any value in purchasing the ailing BlackBerry maker.
post #2 of 74
Makes sense Amazon would be up for RiM considering their KIndle Fire is based on PlayBook engineering.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #3 of 74
RIM doesn't want to see all their hard engineering work go to Amazon? I now have respect for them.
post #4 of 74
Tough, tough, tough! It's hard to see such a successful company in such dire straights. I feel for the employees and their families.

Can't help thinking back to when Steve introduced the iPhone 6 mo.'s before its release and the RIM engineers did not believe he was telling the truth about the iPhone's capabilities.

How ironic, "Research In Motion!" their very namesake and they didn't do what Steve said...to be successful in tech u have innovate till ur 10 years ahead of everyone else.

7 years ago, I used to play tennis with the CEO of best western hotels and between games he would be checking his email on his BB and then he would get a phone call and it looked like he was holding a cheeseburger up to his ear! Ugh!
post #5 of 74
Quote:
Originally Posted by mdriftmeyer View Post

RIM doesn't want to see all their hard engineering work go to Amazon? I now have respect for them.

Well said.
post #6 of 74
Kudos to RIM for going down honorably.



Weren't they the ones that were rumored to be buying Apple in '96?

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #7 of 74
Now we know how stupid they are.
post #8 of 74
Sounds more like they tried to sell before, and gave up after no one was interested:

"Earlier this year, RIM was pitched to other mobile phone makers like HTC and Samsung, but the companies already have licensing agreements with Google's Android and did not see any value in purchasing the ailing BlackBerry maker. "

"Amazon hired an investment bank to put together a merger offer this summer, but the internet sales giant fell short of making an official offer. "
post #9 of 74
Good for RIM!! That's showing some gusto! Just like when Microsoft tried to buy Yahoo a few years back for serious billions! Now look how good Yahoo is doing!!

Oh... wait... never mind... </sarcasm>
post #10 of 74
Quote:
Originally Posted by DougDolde View Post

Now we know how stupid they are.

That depends on what was offered.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #11 of 74
Amazon might actually be a pretty good fit for RIM... as sick as that makes me feel. I'm sure they could pull off an all-stock offer that would be accepted. RIM needs something... and just cutting the two heads off won't get them nearly far enough. Just think... they have lost over 90% of the value since the 2008 peak.
post #12 of 74
Quote:
Originally Posted by AppleInsider View Post


RIM is looking to its co-chief executives Mike Lazaridis and Jim Balsillie to halt the company's free-fall. . .

That's the big, glaring flaw in their recovery plan.
post #13 of 74
They had the chance to compete. The just watched Steve produce. They sat on their hands and watched and convinced themselves that they had the superior product. They did and they are goon become the company that couldn't.
An Apple man since 1977
Reply
An Apple man since 1977
Reply
post #14 of 74
Quote:
Originally Posted by AppleInsider View Post

Citing unnamed sources close to the matter, the Chicago Tribune reports that the embattled BlackBerry maker has turned down takeover offers by Amazon.com and others, choosing to look internally to remedy ongoing losses and a plummeting stock price.

Is embattled better or worse than beleaguered?
post #15 of 74
Quote:
Originally Posted by Tallest Skil View Post

Kudos to RIM for going down honorably.



Weren't they the ones that were rumored to be buying Apple in '96?

What the? Go down... "honorably"?

This is business, not Braveheart.
post #16 of 74
Thieves Make Off With 5,200 PlayBooks, RIM Confirms

A group of thieves made off with a truck carrying about 5,200 BlackBerry PlayBooks in Canada last week, Research in Motion confirmed Tuesday. The semi-trailer headed for Ontario reportedly was carrying merchandise with a retail value of between $1.7 million and $5 million.

http://www.pcmag.com/article2/0,2817,2397881,00.asp


Have at er boys!
na na na na na...
Reply
na na na na na...
Reply
post #17 of 74
Quote:
Originally Posted by Icaras View Post

What the? Go down... "honorably"?

This is business, not Braveheart.

They had their shot, they failed to change. They've done some great research, they don't want it getting in the hands of people who won't use it for any practical purpose.

That's something to respect.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #18 of 74
Why do we not like Amazon around here?
post #19 of 74
Quote:
Originally Posted by SolipsismX View Post

Makes sense Amazon would be up for RiM considering their KIndle Fire is based on PlayBook engineering.

That's not important, as apparently RIM didn't design the hardware.

RIM has two things of value.

One is the BES server. But that's increasingly less important as security gets better for other phones. iOS is considered to be second to RIM in that. Right now businesses are buying more iPhones than BBs'. Android is doing very well there too, and their security isn't all that great.

So if business isn't as concerned about security, that devalues RIM's solution, especially considering the failures they've had over the years with it.

Two is BBM. The message service has been a big advantage in a number of countries because it's free to BB users to other BB users. But with iMessage, Apple has a big competitor, because they are selling many more phones, and so it can be more widely used. Google and MS are working on similar services.

The only other advantage is that their phones cost less, but Android phones cost less too. And now, so do iPhones.

Amazon was smart not to get involved. It would be cheaper to develop their own phones, the way they did with their Kindles. Using outside expertise, they've made their job easier, and still maintain control.

Really, what can RIM offer?
post #20 of 74
Quote:
Originally Posted by quinney View Post

Is embattled better or worse than beleaguered?

Better.
post #21 of 74
Quote:
Originally Posted by triggs View Post

Why do we not like Amazon around here?

I like Amazon!
post #22 of 74
Quote:
Originally Posted by Tallest Skil View Post

They had their shot, they failed to change. They've done some great research, they don't want it getting in the hands of people who won't use it for any practical purpose.

That's something to respect.

People were saying similar things about Apple during their mediaeval period. People who thought they should license their OS to other vendors, others who thought they should license Windows, and others who infamously stated they should shut down Apple and give the money back to the shareholders. When they bought NeXT, a company that changed the world yet never made a consumer impact, and brought back the outed Jobs as interim CEO it was said, as you know, that this was a dumb move. I believe Bill Gates made a comment about Jobs foolish notion of saving Apple.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #23 of 74
Quote:
Originally Posted by island hermit View Post

Thieves Make Off With 5,200 PlayBooks, RIM Confirms

A group of thieves made off with a truck carrying about 5,200 BlackBerry PlayBooks in Canada last week, Research in Motion confirmed Tuesday. The semi-trailer headed for Ontario reportedly was carrying merchandise with a retail value of between $1.7 million and $5 million.

http://www.pcmag.com/article2/0,2817,2397881,00.asp


Have at er boys!

Don't worry.

The police will find them dumped somewhere nearby shortly, with a note saying, 'Whoops! Our bad! We thought they were iPads'...
If you value privacy you can now set DuckDuckGo as your default search engine in iOS and OS X.
Reply
If you value privacy you can now set DuckDuckGo as your default search engine in iOS and OS X.
Reply
post #24 of 74
Quote:
Originally Posted by island hermit View Post

Thieves Make Off With 5,200 PlayBooks, RIM Confirms

A group of thieves made off with a truck carrying about 5,200 BlackBerry PlayBooks in Canada last week, Research in Motion confirmed Tuesday. The semi-trailer headed for Ontario reportedly was carrying merchandise with a retail value of between $1.7 million and $5 million.

http://www.pcmag.com/article2/0,2817,2397881,00.asp


Have at er boys!


Wonder if they will bring them back once they discover they're not iPads?
post #25 of 74
Quote:
Originally Posted by F1Ferrari View Post

Wonder if they will bring them back once they discover they're not iPads?

Is there an echo in here, or is it just me?

Beat ya!
If you value privacy you can now set DuckDuckGo as your default search engine in iOS and OS X.
Reply
If you value privacy you can now set DuckDuckGo as your default search engine in iOS and OS X.
Reply
post #26 of 74
It is like watching a train wreck in slow-mo. In 12 months time when their new OS is (hopefully) ready, their user base will have evapourated. Dumb to go looking for a merger when you are desperate, if that was an option, they should have done it 5 years ago when the iPhone was announced.

One advantage of being dual CEOs, you only have to take half the blame when your company falls off a cliff.
post #27 of 74
You have to feel sorry for the (now) poor investors... don't you?

$69.86 February 15th 2011
\\/
\\/
\\/
\\/
\\/
\\/
\\/
\\/
\\/
\\/
$13.44 December 15th 2011
May the Blue Bird of Happiness leave a deposit with you and yours.
Reply
May the Blue Bird of Happiness leave a deposit with you and yours.
Reply
post #28 of 74
Quote:
Originally Posted by OzExige View Post

You have to feel sorry for the (now) poor investors... don't you?

$69.86 February 15th 2011
\\/
\\/
\\/
\\/
\\/
\\/
\\/
\\/
\\/
\\/
$13.44 December 15th 2011

June 20, 2008 -> $144.56
na na na na na...
Reply
na na na na na...
Reply
post #29 of 74
Quote:
Originally Posted by quinney View Post

Is embattled better or worse than beleaguered?

+1

Quote:
Originally Posted by island hermit View Post

Thieves Make Off With 5,200 PlayBooks, RIM Confirms

A group of thieves made off with a truck carrying about 5,200 BlackBerry PlayBooks in Canada last week, Research in Motion confirmed Tuesday. The semi-trailer headed for Ontario reportedly was carrying merchandise with a retail value of between $1.7 million and $5 million.

Of that total, $500 was the value of the Playbooks.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #30 of 74
It's kinda fitting that they're headquartered in Waterloo.

It's their patents for the "push email" technology that's worth something.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #31 of 74
Quote:
Originally Posted by island hermit View Post

Thieves Make Off With 5,200 PlayBooks, RIM Confirms

A group of thieves made off with a truck carrying about 5,200 BlackBerry PlayBooks in Canada last week, Research in Motion confirmed Tuesday. The semi-trailer headed for Ontario reportedly was carrying merchandise with a retail value of between $1.7 million and $5 million.

http://www.pcmag.com/article2/0,2817,2397881,00.asp


Have at er boys!

Must have been a nice truck.

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

Reply

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

Reply
post #32 of 74
Quote:
Originally Posted by Kibitzer View Post

Must have been a nice truck.

Well, it's a good question as to the value of the tablets. A couple of financial writers have already brought this up.

If the value was really $5,000,000, that would put a value of $961.54 per tablet. That's obviously ridiculous.

At $1,700,000, the value would be $326.92. That's much closer to reality. But it depends on the mix of Flash the models have. The value to RIM would be much less, as most are now selling for $199. So that would put the total at $1,034,800.

I imagine the value would be close to $1,400,000.
post #33 of 74
Quote:
Originally Posted by melgross View Post

Well, it's a good question as to the value of the tablets. A couple of financial writers have already brought this up.

If the value was really $5,000,000, that would put a value of $961.54 per tablet. That's obviously ridiculous.

At $1,700,000, the value would be $326.92. That's much closer to reality. But it depends on the mix of Flash the models have. The value to RIM would be much less, as most are now selling for $199. So that would put the total at $1,034,800.

I imagine the value would be close to $1,400,000.

Aw, Mel ... I was hoping the "nice truck" line would have tickled your funny bone!

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

Reply

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

Reply
post #34 of 74
Quote:
Originally Posted by melgross View Post

Well, it's a good question as to the value of the tablets. A couple of financial writers have already brought this up.

If the value was really $5,000,000, that would put a value of $961.54 per tablet. That's obviously ridiculous.

At $1,700,000, the value would be $326.92. That's much closer to reality. But it depends on the mix of Flash the models have. The value to RIM would be much less, as most are now selling for $199. So that would put the total at $1,034,800.

I imagine the value would be close to $1,400,000.

Regardless of value, RIM can now announce another 5200 shipped!
na na na na na...
Reply
na na na na na...
Reply
post #35 of 74
Quote:
Originally Posted by Tallest Skil View Post

They had their shot, they failed to change. They've done some great research, they don't want it getting in the hands of people who won't use it for any practical purpose.

That's something to respect.

Not really. It its going down, their job is to maximize the value for stakeholders.
post #36 of 74
Quote:
Originally Posted by island hermit View Post

Regardless of value, RIM can now announce another 5200 shipped!

I know I shouldn't, but

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #37 of 74
Quote:
Originally Posted by AppleInsider View Post

[...] "Until you stabilize the platform, people are going to be very nervous about spending $10 billion or more." [...]

Just wait another quarter. "Do I hear a 5 billion? Going once at 4.75 billion! Going twice..."

Sent from my iPhone Simulator

Reply

Sent from my iPhone Simulator

Reply
post #38 of 74
Quote:
Originally Posted by Kibitzer View Post

Aw, Mel ... I was hoping the "nice truck" line would have tickled your funny bone!

It did, but you know my problem. I've just got to use an excuse to get some facts in.
post #39 of 74
Quote:
Originally Posted by island hermit View Post

Regardless of value, RIM can now announce another 5200 shipped!

Yeah, but to where?
post #40 of 74
Quote:
Originally Posted by SockRolid View Post

Just wait another quarter. "Do I hear a 5 billion? Going once at 4.75 billion! Going twice..."

RIM is now below book value, by a fair amount; $5 per share. If they were bought, the parts would be worth more than the company as one whole.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › RIM turned down multiple takeover bids despite financial woes