Report: Samsung a 'Front Runner' to Buy Up RIM

Dennis Faas's picture

Troubled smartphone maker Research in Motion (RIM), best known for its BlackBerry mobile device, may soon be bought up by tech industry heavyweight, Samsung. The rumor of such a purchase was responsible for an increase in RIM's stock value Tuesday (January 17, 2012).

This is not the first time a heavy-hitter like Samsung has been mentioned as a possible purchaser of RIM.

Back in December, 2011, Nokia, Amazon and, in particular, Microsoft, were all believed to be interested in obtaining the Waterloo, Canada-based firm, which has faced considerable adversity in the past year as a result of declining sales of its numerous devices.

Co-CEOs Mike Lazaridis and Jim Balsillie have received much of the blame for the company's troubles, with some experts suggesting that a takeover and management restructuring could put RIM back on track.

Buyout Rumors Lead to Stock Value Spike

The Samsung rumor comes from the website BGR ("Boy Genius Report"), which suggested that this is the most recent maneuver by RIM to revive consumer interest in lackluster products like its BlackBerry and its PlayBook tablet.

In December, Research in Motion reported a loss of $485 million on the PlayBook, sales of which remain far below company expectations.

According to BGR, Samsung is the "front runner" to acquire RIM. Reaction to the news brought RIM's stock a significant jump in value on Tuesday, from $16.31 to $17.47 per share. That's an increase of roughly eight per cent. (Source:

RIM Mulling "Outright Sale" of Entire Company

"Research In Motion is currently weighing every single option it can think of in an effort to reverse a negative trend that is approaching a boiling point for investors," BGR's news item stated.

"Reports that RIM is currently in talks to license its software to other vendors are accurate according to our trusted sources, though we have been told that RIM is most likely leaning toward an outright sale of one or more divisions, or even the whole company." (Source:

Analyst Tavis McCourt, of Morgan Keegan and Co., claims the Samsung rumor makes business sense. "It does have logic to it in the sense that Samsung has no viable high-end smartphone operating system," McCourt said. (Source:

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