RIM considers splitting business in two: paper

LONDON Sun Jun 24, 2012 10:27am EDT

A sign of Research in Motion (RIM) is seen at its headquarters in Waterloo, Ontario, January 22, 2012. REUTERS/Geoff Robins

A sign of Research in Motion (RIM) is seen at its headquarters in Waterloo, Ontario, January 22, 2012.

Credit: Reuters/Geoff Robins

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LONDON (Reuters) - BlackBerry maker Research in Motion is considering splitting its business in two, separating its struggling handset manufacturing division from its messaging network, The Sunday Times reported.

RIM, which last month said it had hired JP Morgan and RBC Capital to look at its strategic options, could break off its handset division into a separate listed company or sell it, the British newspaper reported without citing sources.

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, the newspaper said.

(Reporting by Kylie MacLellan; Editing by Catherine Evans)

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Comments (3)
SBMobile wrote:
DAMN, RIMM is going to take a major hit tomorrow! This is NOT good news for them, especially since they can’t even get BBM to work on their own OS. Licensing BBM out to other companies is a “pipe” dream! This what RIM’s been trying to avoid for months, now they’re exposed to the harsh market & their competitors are going “roast” them. If FaceBook or Amazon buy them, the company as you know it is finished. A “FaceBook-phone” is a really dumb idea & RIM’s hardware/software/network combo is at least 3-4 years behind the market, so a purchase at this point would take place because parties had money to waste for no reason. Splitting RIM would only turn them into “2″ companies no one’s interested in!

Jun 24, 2012 12:01pm EDT  --  Report as abuse
br14 wrote:
Unattributable negativity designed to attack RIM from a newspaper owned by a parent company with an exclusive deal with Apple.

Why would RIM even consider such an option when they have gambled the company on a new device and new software due for release later this summer?

They wouldn’t damage their chances by splitting the company before that product launches.

And in any case, there’d be even less share holder value from a split than there was before.

It’s nonsense. Fascinating that Reuters decided to run with it though.

Jun 24, 2012 1:57pm EDT  --  Report as abuse
sme40 wrote:
Funny br14, since Reuters had nothing to do with this story — they are quoting a story from THE SUNDAY TIMES of the UK — or did you conveniently ignore that to make your ridiculous claim that this is just a “negative RIM press conspiracy”?

and fyi: they are looking for a survival plan by any means necessary so you can ignore the FACTS that manufacturers have announced plans to cease production for RIM products (Celestica), that they are laying off thousands of employees, they have had massive senior management turnover, they continue to lose market share and are trying desperately to find a buyer — you COULD ignore all that but whatever — go ahead and believe in a “press conspiracy”…

Jun 24, 2012 4:10pm EDT  --  Report as abuse
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