Close this search box.

RIM Left In ‘No Man’s Land’ By Google Deal

Research In Motion Ltd. (RIMM), maker of the BlackBerry smartphone and PlayBook tablet computer, may have the most to lose from Google Inc. (GOOG)’s deal to acquire Motorola Mobility Holdings Inc.

Google’s proposed $12.5 billion acquisition would leave RIM a smaller player relative to rivals, which may force it to strike an alliance with another company or sell itself to remain competitive, said Will Stofega, a program director at consultant IDC. With Google’s cash and software expertise, Motorola may present a direct challenge to RIM in its traditional stronghold, the corporate market, he said.

“Now that Motorola has a big war chest behind them, Research In Motion has got to watch out,” Stofega said in an interview.

Already losing market share in smartphones, RIM is seeing several competitors beyond Google and Motorola gain scale and expertise. In February, mobile-phone maker Nokia Oyj struck a strategic partnership with Microsoft Corp. (MSFT), the world’s largest software maker. Last year, Hewlett-Packard Co. (HPQ), the world’s largest computer company, bought handset maker Palm Inc. Apple Inc. (AAPL), maker of the iPhone, briefly became the world’s most valuable company last week, though it hasn’t made major acquisitions.

RIM may need more size and software expertise to compete, said independent wireless analyst Chetan Sharma. The Waterloo, Ontario-based maker of BlackBerrys may have to sell to a company such as Hewlett-Packard, Dell Inc. (DELL), Samsung Electronics Co. or HTC Corp. (2498), he said.

“They are in no man’s land at this point,” Sharma said in an interview.


2 Responses

  1. This is reminiscent of the late 1800s and the development of the “trusts.” While there is still independent innovation, so much corporate effort is devoted to acquisitions and mergers. Fewer and fewer companies are in the market, start-ups are discouraged, and the marketplace shrinks to 2 or 3 players.

  2. Mechilas Kovoidcha but I still like the RIM Just because of the BB messinger. For 10 years people are saying its over for RIM – it really is not

Leave a Reply

Popular Posts