RIM Death Spiral – Could Microsoft, Apple or Google be potential buyers!

RIM co-CEO with Microsoft CEO Steve Ballmer

We don’t talk about RIM and Blackberry devices that much, and neither does most of the tech business, some hope did arise when the Playbook was released, but that seemed to just disappear.

The big problem is though, RIM is a company in trouble, whilst Blackberry 10 is coming along and devices expected soon, the company is still facing losses on top of the already serious problems the company is having financially.

The results of RIM’s strategic review, undertaken by JP Morgan and RBC Capital, is in, and the board is soon to be confronted with some stark choices.

Split Decisions

The Sunday Times reports that RIM may either sell of a large portion of the company to Microsoft, or split the company in two parts, selling off the handset business to Facebook and Amazon, and the messaging service to Apple or Google.

RIM management has made it clear that they prefer to run the company themselves, but are facing increasing share holder pressure to unlock the value of the company, whose market cap at present of $5.17 billion is less than the book value of the company. The company has $1.7 billion in cash, meaning the rest of the company is barely valued more than 3 Instagrams.

At such a low price Microsoft must be sorely tempted, simply for the value of the enterprise contacts RIM has, not to mention the patents.

Similarly one could easily imagine Microsoft buying the company and passing the handset division on to Nokia while keeping the enterprise network.

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