Monday, February 23, 2009

Could There Be A RIMSoft WindowBerry in Your Future?

Silicon Alley Insider suggested in an article today that Microsoft (MSFT) should purchase Research In Motion (RIMM), while the stock is cheap, if it really wants to be a serious player in mobile. RIM is trading near it's 52 week low at $37.42, down from the $150 range last June. The benefits to Microsoft seem pretty obvious given their inability to get serious traction with their Windows Mobile OS and their limited revenue opportunity per handset as a software only play. The primary benefit to RIM would be the ability to leverage Microsoft's financial resources in order to maintain or grow its position in the increasingly crowded and competitive smartphone market. Interesting idea...but I am very concerned that there could be a painful culture clash in a combined company that could stifle innovation on the device side. If not executed artfully, such a merger could create substantial opportunities for Nokia, Acer, Dell, etc.

No comments:

Post a Comment