Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Over the past few years, Research In Motion Ltd. (RIMM) has been playing defense. It's certainly a terrible strategy in light of its rivals, which include Apple, Inc. (AAPL) and Google, Inc. (GOOG). As a result, the stock price for RIM has been lackluster. Unfortunately, it looks like things will only get worse.
Consider that it is only now that RIM is thinking about buying a mobile advertising network (according to a report from the Wall Street Journal). Of course, Apple has already entered the business with its $250 million purchase of Quattro Wireless and Google shelled out $750 million for AdMob.
True, the mobile ad market is still in the emerging stages and will take time to get critical mass. But, it is important to build a foothold as soon as possible. In fact, one of the biggest problems of being late is that there are fewer quality companies to buy.
But RIM apparently has found a prospect: Millennial Media. Based in Baltimore, the company claims to have the largest mobile media audience in the US. Then again, the company has a strong technology infrastructure that can target market segments to maximize revenues.
However, the price tag won't be cheap. The buzz is that a deal could fetch $400 million to $500 million.
But for RIM, the company certainly has enough cash. Rather, it needs to get more aggressive if it wants to be a key player in the mobile. Despite all this, it appears that RIM is balking on the valuation, sticking to its conservative ways.
Tom Taulli is also the author of several books, including the Complete M&A Handbook and also develops iPhone apps for finance.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
