RIM Considers Spinning Off Handset Business From Messaging 87
According to this Reuters report, RIM is considering separating its messaging network business from its manufacture of handsets, and either listing the resulting new company separately, or selling it to another firm. According to the article, "Potential buyers would include Amazon and Facebook, it reported, adding that RIM's messaging network could also be sold, or opened up to rivals such as Apple and Google to generate income. An alternative option would be to keep the company together but sell a stake to a larger technology firm such as Microsoft."
Handle has been pushed (Score:4, Insightful)
Water is swirling in the bowl
Just go back to what you did best (Score:4, Insightful)
Re:Catch-22 (Score:5, Insightful)
If your entire businiess model rests on having a closed off IM network in the year 2012, you may want to rethink things...
Die RIM, Die (Score:1, Insightful)
Dear RIM: please just declare bankruptcy and just go away. Most of us don't like you any more and we find the fascination with the messaging network even stranger given millions of new alternatives. The news of your death throes are not the least bit surprising to us, but we'd all be far better off if you were just gone. Oh, and please take Nokia with you.
Why would they think either approach would work? (Score:5, Insightful)
If they'd seen the writing on the wall early on, selling access to their messaging network *might* have worked (although I don't really believe that). But at this point the market has spoken - and both sides of RIM's business are toast.
The people who think there's much demand for RIM's messaging network are living five years in the past.
Re:Handle has been pushed (Score:4, Insightful)
And yet, unlike Nokia, they still are making a profit every quarter. Their stock may have fallen but its is in the oversold regime: price to earnings ration is just 4.4. While their predicted P/E does get worse but 15.44 is low for a tech company, and very low compared to facebook at 105. http://www.bing.com/finance?q=RIMM [bing.com]
Re:Just go back to what you did best (Score:4, Insightful)
I imagine the impending death of a corporation occurs much as the death of a single person supposedly does.
1 You identify the initial threat.
A) The board wakes up to find the stockholders are angry with a 3rd quarter's market valuation of their equity, and its clear that the analysts no longer responding to their PR.
2) You get the general feeling that something is terribly wrong.
B) The top-level executives are made aware that if they can't come up with a credible action plan to counter the downward slide, changes will be forthcoming.
3) You get visceral confirmation from outside that you are in deep dog-doo. Other people's behavior around you changes, markedly.
C) Your debt to equity ratio his double along with the cost of the commercial paper that used to fund your sales junkets and bonus parties.
4) Your life begins to, "flash before your eyes."
D) Historical reports confirming the reality of your down-slide are trotted out and contingency plans are drawn up. (Grim faces exiting these heretofore convivial sessions are interpreted by staff as signs of doom.)
5) You begin to consort with God about alternatives and bargain with yourself about changes in the next life.
E) Everyone knows there ass is on the line. Resumes are updated and posted to LinkedIn, you begin to renew old acquaintances. Let the Lay-offs begin.
6) The logical alternatives to past decisions are reanimated in the vain hope that they might still have value in future.
F) RIM's executives publicly acknowledge that the goose has laid its last golden egg and its worth more to them as Christmas dinner and offal than as a single undervalued business entity. Smoke signals enter the ether regarding arbitrage.
7) Death, failing an act of God, is imminent.
G) Capital equity firms like Bain Capital are 'consulted'.