RIM shares soar on takeover rumors

Dec 21, 2011
A woman uses her BlackBerry phone in Jakarta 2010. Research In Motion's shares took off Wednesday amid unconfirmed reports that tech heavyweights Microsoft, Nokia and Amazon had looked to take over the BlackBerry smartphone maker.

Research In Motion's shares took off Wednesday amid unconfirmed reports that tech heavyweights Microsoft, Nokia and Amazon had looked to take over the BlackBerry smartphone maker.

The on Tuesday reported that US software giant Microsoft and Finnish cell phone behemoth Nokia mulled a joint takeover of RIM in recent months.

Other reports said online retailer Amazon had separately weighed an offer for Canada's largest .

The speculation drove a seven percent jump in RIM shares in morning trading in Toronto, to Can$13.86 (US$13.48).

RIM would not confirm or deny it held takeover talks with any of the companies.

"Sorry, RIM's standard policy is to decline comment on rumors and speculation," a spokesman told AFP in an email.

National Bank Kris Thompson said it is "very unlikely" that anyone including Amazon, Microsoft or Nokia would buy RIM now, "given the company's dismal performance and uncertain outlook."

He predicted BlackBerry sales to fall significantly over the coming year, adding, "This has to scare buyers off for now."

"We expect the vultures to circle and to wait for a lower entry point," Thompson concluded, noting that potential buyers "are few" and that valuing RIM's intellectual property is "challenging."

RIM shares have lost 80 percent of their value this year.

A costly BlackBerry service outage and deep discounting of the price of its PlayBook were cited last week as factors in the company's latest gloomy earnings figures.

Explore further: Amazon, Simon & Schuster sign book retail deal

add to favorites email to friend print save as pdf

Related Stories

RIM shares soar on Icahn stake reports

Sep 27, 2011

Shares of Research In Motion rose sharply on Wall Street on Tuesday amid speculation that billionaire US investor Carl Icahn has taken a stake in the troubled BlackBerry maker.

Microsoft lower on Nokia report

Jun 01, 2011

Microsoft shares were down nearly two percent on Wall Street on Wednesday amid an unconfirmed report that the US software giant had agreed to purchase Nokia's mobile business for $19 billion.

RIM down over 21 percent on Wall Street

Jun 17, 2011

Shares in Research in Motion plunged on Wall Street Friday after the BlackBerry maker lowered its outlook for the year and said it would be cutting jobs.

RIM shares plunge on lowered earnings outlook

Dec 04, 2011

Research In Motion shares plunged Friday as the struggling BlackBerry maker said it will not meet its annual earnings target and it is taking a $485 million charge because of weak sales of the PlayBook tablet ...

Recommended for you

Amazon, Simon & Schuster sign book retail deal

1 hour ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

Facebook sues law firms, claims fraud

12 hours ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

IBM 3Q disappoints as it sheds 'empty calories'

12 hours ago

IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile ...

User comments : 0