Thursday, December 29, 2011

RIM takeover talk

This is a very good overview of the prospect of a Research in Motion takeover by the New York Times' Ian Austen: "Despite RIM Takeover Talk, Hurdles Would Be High." The piece sets out the many variables, among them the suitors who might line up, RIM's adapting strategy and difficulties, the stubbornness of the co-CEOs who were named the worst CEOs of 2011, etc.

Interesting to note that apparently Microsoft approached RIM last summer but was rebuffed. Amazon and Facebook are also mentioned suitors as is a Chinese company, ZTE, the latter being viewed as a candidate who would raise the objection of the U.S. government.

If it does become a possibility, the piece suggests that the Harper government would nix a foreign takeover.
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.”
Despite the many hurdles and considerations, it could yet become a political issue in 2012.