For the last 24 hours or so, rumors in the air that Microsoft Corp. (NASDAQ: MSFT) may be looking to place a bid for Research In Motion, Ltd. (NASDAQ: RIMM) has been floating to the top of the M&A bowl. It's easy to note that rumors about RIM happen every week, but what makes this one so different? Many, many things. Microsoft's recent attention to making its Windows Mobile platform entrenched into the market for handheld Smartphones continues to indicate how highly the company places mobile technology in its future growth strategy.
By now, it's pretty obvious that companies like Motorola, Inc. (NYSE: MOT), Microsoft and Google, Inc. (NASDAQ: GOOG) all believe that the future of the internet is in the mobile customer's hands. Yes, we'll always have wireless-enabled laptop computers, but for those growing masses who want the office in their pocket, small Smartphones and like devices are just now beginning to see widespread popularity. It will blossom into a huge market from here.
Unless the price is just too high, Microsoft's acquisition of the best-known name in mobile computing would allow it to gain a very loyal customer base almost instantly, but the company could not just dump RIM's exclusive software and email "push" capability in favor of its own. Both RIM and Microsoft now have systems to automatically push received email to customers in the mobile field in real-time. They are direct competitors.
By buying its largest competitor in this space, Microsoft would own the market for Smartphone-based applications and push email, ahead of European-based Symbian. Microsoft's only problem : RIM's market cap is nearly $47 billion. But with rumors fueling Google's entry into the wireless space in full force soon, Microsoft may again be forced to act in the endless arm wrestling with the internet search giant.
Why RIM (RIMM) would make a perfect addition to Microsoft (MSFT)
Posted Aug 31st 2007 11:30AM by Brian White
Filed under: Rumors, Microsoft (MSFT), Research in Motion (RIMM)
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Reader Comments (Page 1 of 1)
8-31-2007 @ 1:30PM
Steve Shackelford said...
That would be an awesome catalyst for microsoft. I think they should go for it. -Steve http://www.turtlewealth.com
8-31-2007 @ 6:10PM
Kang Ho Kim said...
The deal could be closer than we think. If you do some research you find that Microsoft and RIM have a lot in common http://www.newsvisual.com/newsvisual/2007/08/rim-and-microso.html
8-31-2007 @ 9:14PM
scooperson said...
I have position in RIMM and see positives in pop $s with purchase, however would rather ride the surge without a buyout. Do not think it will happen anyway. MSFT is a software company and do not invest in the "boxes" that run the programs. Their excursion into gaming is a mess. MSFT can become a leader and create new applications that run on RIMM hardware and other such devices and they will be better off.
sc
9-01-2007 @ 3:17PM
Bob said...
MSFT will make a play for RIM, Sooner than most think( less than 30 days), but they may get in a bidding war, driving the price to absurd levels!
9-01-2007 @ 3:29PM
Massi said...
There is "Two mobile future of internet" One is the "consumer mobile" one and the winner will be Jobs and the other one is the "Enterprise Mobile" one where the RIM no. 1 is. So if MS decide to be an enterprise company then they should buy RIM and better sell XBOX to sony :-)
Massi
9-01-2007 @ 10:03PM
louis_2924 said...
msft and rimm merger could side track some of googles present activities . copetition is welcomed by investers. msft and rimm investers would profit from merger gaining more dividends being held back by bill gates.
9-02-2007 @ 2:30AM
scooperson said...
I will be very surprised if Msft goes after rimm. Msft is more likely to acquire Handango... Dividends, what? Expanding tech companies do not pay dividends, they reinvest in new technology. If your high tech company starts to pay dividends, it is time to sell it! If MSFT wants to get into the game, they need to acquire YAHOO!
sc
9-02-2007 @ 2:59AM
scooperson said...
Also, I truly agree that hand held devices, blackberry is NO 1!, is the life and future of internet and computing. I used to carry a full HP notebook computer, about 2 years ago, and now all I need is my blackberry. I have tried all recent mobile based home web pages and to date, YAHOO GO is the best! We will still need a land based full computer for the real work, but the mobile connection IS the wireless access to our office computing and the future.. I used to lug around a so called compact computer in 1982, a compaq portable, weighed 30 pounds and it is amazing how we have progressed! Technology rules!!!
9-02-2007 @ 7:47PM
Jollyroger said...
If Microsoft does buy Rimm I will give up on them. Microsoft has only ever been good at, and made money at one thing....software! And they don't need Rimm for that anymore. Besides, what will the other smart phone manufacturers think when they have to compete with Microsoft......they'd surely think twice about using Microsoft's mobile operating system. I would agree that Yahoo would be a better bet if the plan was to compete with Google.