RIM May Sell Off BlackBerry Business to Facebook or Amazon Discussion

[Ryan Punzalan]

Research in Motion is possibly considering splitting its business in two, separating its handset production division from its messaging network, and then selling the hardware division.

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[Hook]

I think separating the messaging business and making it platform agnostic is probably their best shot, but I think it's the kiss of death for the hardware division-- but then, it may be too late to save it anyway. I really have a hard time believing anyone would buy the hardware business unless it was to grab the patents. Can someone explain (I'm no expert) what the attraction would be to the proposed suitors?

[Adama D. Brown]

I think separating the messaging business and making it platform agnostic is probably their best shot, but I think it's the kiss of death for the hardware division-- but then, it may be too late to save it anyway.

Yeah, I'm pretty sure it is. Frankly, it may well be too late to save the messaging division too. Any company is going to have to ask themselves, why are we looking at this specific platform agnostic messaging system when there's others from more stable companies?

[Mitlov]

I think separating the messaging business and making it platform agnostic is probably their best shot, but I think it's the kiss of death for the hardware division-- but then, it may be too late to save it anyway. I really have a hard time believing anyone would buy the hardware business unless it was to grab the patents. Can someone explain (I'm no expert) what the attraction would be to the proposed suitors?

It has incredible brand recognition, particularly in the white-collar market.

You see this a lot in the car industry where an up-and-coming third-world company buys a well-known-but-struggling brand to get market penetration. Jaguar and Land Rover are owned by India's Tata Motors. Volvo Cars is owned by China's Zhejiang Geely Holding Group. Lotus is owned by a Malaysian firm.

For someone like Huawei, who presumably has resources to expand but has no name recognition whatsoever in America, having the Blackberry name for their hardware could be quite the coup d'etat. Particularly if they're using it with WP8, which is emphasizing enterprise-level security, and thus would be an appropriate offering for Blackberry's traditional market.

[Hook]

It has incredible brand recognition, particularly in the white-collar market.

You see this a lot in the car industry where an up-and-coming third-world company buys a well-known-but-struggling brand to get market penetration. Jaguar and Land Rover are owned by India's Tata Motors. Volvo Cars is owned by China's Zhejiang Geely Holding Group. Lotus is owned by a Malaysian firm.

For someone like Huawei, who presumably has resources to expand but has no name recognition whatsoever in America, having the Blackberry name for their hardware could be quite the coup d'etat. Particularly if they're using it with WP8, which is emphasizing enterprise-level security, and thus would be an appropriate offering for Blackberry's traditional market.

Okay, that actually made some sense, thanks. Oh, and don't think we didn't notice you slipping in that little plug for WP. :-P ;-D

[Mitlov]

Okay, that actually made some sense, thanks. Oh, and don't think we didn't notice you slipping in that little plug for WP. :-P ;-D

I don't think it's a coincidence that RIM is waving the white flag about a week after WP8 was previewed. The enterprise market was all RIM really had left, and if it loses even a significant portion of that to MS, RIM's downward spiral will become a free-fall.

[Mitlov]

Another theory: I could see the BB hardware division bought up by Microsoft itself, and use it to build halo devices meant to inspire consumer and enterprise interest in Windows Phone itself, and give third-party manufacturers a bit of a kick to make more inspiring WP handsets (the phone equivalent of what MS is doing with the Surface tablet).

MS isn't a stranger to buying an interest in a struggling company to gain a foothold in a market it intends on expanding into...B&N Nook division, anyone?

[Varjak]

But what does FB gain by buying the BB hardware? They aren't the kind of phone FB would likely sell and the messaging service is what provides the revenue to support the hardware business. If FB wants to build a phone, they should hire some people versed in sourcing components and contract manufacturers. Gaining the messaging would actually be useful for FB.

But I do agree that someone like Huawei buying the hardware brand would make some sense as Mitlov mentioned.

[weegie]

I don't think it's a coincidence that RIM is waving the white flag about a week after WP8 was previewed. The enterprise market was all RIM really had left, and if it loses even a significant portion of that to MS, RIM's downward spiral will become a free-fall.

I give you 10 out of 10 for optimism and for those 'Tile' shaped rose tinted glasses you seem to like wearing but the reality is Microsoft is irrelevant and a lifeline to no one....if their market share and Nokia's financial results don't convince you I don't know what will.

I don't see anything useful for RIM selling off any part of their business, unless they're going to try and turn assets into cash before closing the doors, rumors like this are more damaging than doing nothing as far as keeping the confidence of your existing customers imo

[Mi An]

I give you 10 out of 10 for optimism and for those 'Tile' shaped rose tinted glasses you seem to like wearing but the reality is Microsoft is irrelevant and a lifeline to no one....if their market share and Nokia's financial results don't convince you I don't know what will.

I'm pretty tough on MS, and tougher on those many research firms with uber-rosy predictions, but even I am not convinced by their market share and Nokia's financials that MS is irrelevant. They're quite relevant and they've still got hands to play even if the next one doesn't work out just right.