Trending this month

December 29, 2011

End of RIM (Research In Motion) :Another tech giant bites the dust

 maker Research in Motion seems to be the  new target of  a takeover from a couple of tech majors.
According guardian ,RIM has turned down takeover overtures from, while Microsoft and Nokia  are considering  a bid for the troubled smartphone maker.

According to news from The Wall Street Journal, Microsoft and Nokia are actively pursuing the beleaguered     company Shares of RIM have dropped by 75 percent since February,2011 as the  RIM's market value has plunged 77% in the past 12 months to value it at about $6.8bn (£4.3bn) – below its "book value" of assets – following a series of disappointing quarterly reports, delayed phone launches, weak sales of the PlayBook tablet and other missteps.

The shares tumbled last week on weaker-than-expected quarterly results, which saw profits crash by 70%, and the announcement of a delay in the launch of the new BlackBerry 10 phones until late 2012. Any potential suitors would most likely face stiff resistance from Jim Balsillie and Mike Lazaridis, the co-chief executives. Collectively they own more than 10 percent, which makes them among the largest shareholders

RIM is also a point of pride for the Canadian government, which has been increasingly reluctant to let foreign companies buy major domestic corporations. In a recent news conference, Stephen Harper, the Canadian prime minister, offered a note of support for RIM, saying “we all know this is an important Canadian company.”