Sign in with
Sign up | Sign in

RIM Might Not be Worth Buying, Suggests Analyst

By - Source: AllThingsD | B 20 comments

Firm boasts over 80 million BlackBerry users around the globe.

Credit Suisse analyst Kulbinder Garcha believes that despite BlackBerry 10, RIM might not be worth acquiring.

"Any deal for [the] company is highly complex in our view, requiring simultaneous management of a declining business, as well significant restructuring, and as such an acquirer maybe be best advised to wait for [the company] to shrink meaningfully before making any potential move," Garcha told AllThingsD. "A break up is possible… [But] we question the quality of the underlying patent portfolio and also believe that converting RIM’s existing network operations center for other OS platforms may require a high level of effort for minimal functionality improvement."

RIM is still a valuable company with a subscriber base boasting over 80 million users around the world. However, what Garcha is stressing above is the fact that interested parties won't just take control of the BlackBerry division, including its operating system and patents. Rather, they would also be taking control of RIM's network operations center (NOC), which is utilized to securely send emails, in addition to the BlackBerry Enterprise Server business.

Subsequently, buying RIM and all of its associated divisions would result in an acquisition that would lead to complex management of the various pieces of RIM's portfolio.

Despite optimism by RIM's current CEO regarding the firm's potential comeback in the competitive smartphone market, the jury is still out for BlackBerry 10, which is arguably the company's biggest lifeline to recover from its financial turmoil.

 

Contact Us for News Tips, Corrections and Feedback

Discuss
Display all 20 comments.
This thread is closed for comments
  • 0 Hide
    Shin-san , October 3, 2012 12:12 AM
    I would be more surprised if someone recommended buying them. I think they did last year
  • 6 Hide
    Zetto , October 3, 2012 12:32 AM
    80 million users and this so called analyst thinks it's not worth anything? A biased idiot more like.
    Giving these people a voice does a disservice to society at large.

    How many Apple stocks are in his portfolio is a better question.
    Just because the valley girls have moved on to iwhatever doesn't mean industry is going to move too, the Blackberry base is still solid due to unmatched security, and will stay that way for quite some time, stock speculators abandon ship overnite so can't be trusted in anything they say.
  • 1 Hide
    Yuka , October 3, 2012 12:35 AM
    Unless they don't own any patents in the US for their most great products, it could be the case.

    Still RIM has a long experience with secure mobile systems, so that's a good thing to have in your assets. So, the thing is not if RIM is worthy or not for another company to buy. It's about the price and this analyst is playing for someone to spread the word to it's cheaper to buy. Been there, done that.

    Wonder how their employees line up is. Do they still have the good old employees that gave birth to the first BB's?

    Cheers!
  • -5 Hide
    mrmez , October 3, 2012 1:20 AM
    Really? Do you think so?

    Wow. I wanna be an analyst when i grow up.
    State the obvious and get paid for it.

    Ask any 12 year old "what phone do you want?" RIM is NOT the answer. Ever.
    Why would you even invest in a company thats been buggering things up for the last 5 years and has no strategy to dig itself out?

    Still, i agree that we need people to tell us what we already know.
  • 1 Hide
    hero1 , October 3, 2012 3:23 AM
    We Canucks say big f u to these analysts. RIM will come back strong. Need to make durable quality phones: one complete touch screen with 4.5" high res screen, normal bold with touch screen and a slide. And that's it. Go get them and if I have not switched to WP8 I'll def get their full touch screen phone.
  • -1 Hide
    tobalaz , October 3, 2012 3:55 AM
    Millions of consumers that have already switched to Android and iOS could have told you RIM wasn't worth buying.... ZING!
  • -2 Hide
    Darkk , October 3, 2012 3:56 AM
    Why would any of this matter since RIM will be out of business sometime early next year since they already shot themselves in the foot with late and outdated products. It would make sense now for RIM to get out of hardware business and just license the technology to other companies who can support it better. RIM had it's day 10 years ago when there wasn't anything close to the Blackberry. Now smartphones pretty much kicked it to the curb. Sorry RIM...your days are numbered as a hardware company.
  • -1 Hide
    iamtheking123 , October 3, 2012 6:10 AM
    otacon72RIM devices will always have something the others will never have...security. Every week there's another security issue with Android coming out and iOS? yeah...ok..lol I need a device that makes good phone calls..shocking I know...is unmatched in email handling and is great for texting. I don't have time to play Angry Birds on my phone...I work for a living.

    My company uses Good for Enterprise. Encrypted partition on Android phones for securely sending/receiving emails. Next argument please...
  • -2 Hide
    JOSHSKORN , October 3, 2012 7:31 AM
    ...and I don't want to be a Canadian Idiot.
  • 0 Hide
    Vorador2 , October 3, 2012 7:47 AM
    RIM is worth big money if only for patent portfolio and the BB server alone.
  • 0 Hide
    Bloob , October 3, 2012 11:21 AM
    Zetto80 million users and this so called analyst thinks it's not worth anything? A biased idiot more like. Giving these people a voice does a disservice to society at large.How many Apple stocks are in his portfolio is a better question. Just because the valley girls have moved on to iwhatever doesn't mean industry is going to move too, the Blackberry base is still solid due to unmatched security, and will stay that way for quite some time, stock speculators abandon ship overnite so can't be trusted in anything they say.

    Symbian had about 500 million users at some point. BB has a good chance imo, but past performance is no quarantee of future performance.
  • 0 Hide
    acadia11 , October 3, 2012 12:46 PM
    I'd buy them for the patents alone. It's the same reason 12 years ago when Apple stock was at $2 that I said buy, buy, buy ... they made a huge come back of course, but even if they hadn't, their patnets alone made them so valuable it would be unlikely they would go BR bevfore someone offered to purchase them.
  • 0 Hide
    lamorpa , October 3, 2012 1:52 PM
    Might?
  • 0 Hide
    belardo , October 3, 2012 2:22 PM
    I bid $1,652.33 for RIM.
  • 0 Hide
    jb1007 , October 3, 2012 2:40 PM
    otacon72RIM devices will always have something the others will never have...security. Every week there's another security issue with Android coming out and iOS? yeah...ok..lol I need a device that makes good phone calls..shocking I know...is unmatched in email handling and is great for texting. I don't have time to play Angry Birds on my phone...I work for a living.


    Well that's the problem. Your life is boring. For the rest of the billions out there who want to have fun and play birds on their phone, we don't care about blackberries. Get out and have fun, if all you do is work, you probably didn't even notice that the blackberry OS is like watching tv on a black and white tube.
  • 0 Hide
    Anonymous , October 3, 2012 2:49 PM
    Maybe I'll start calling myself an analyst too, make some open-ended statement entirely on my own about what "might" be true, and get quoted around the globe for my incredible finance savvy.

    These analysts sure have it good.
  • 0 Hide
    lamorpa , October 3, 2012 2:58 PM
    otacon72RIM devices will always have something the others will never have...security. Every week there's another security issue with Android coming out and iOS? yeah...ok..lol I need a device that makes good phone calls..shocking I know...is unmatched in email handling and is great for texting. I don't have time to play Angry Birds on my phone...I work for a living.

    You forgot to phrase is as, "RIM users will forever maintain the false belief that their devices will always have something the others will never have...security."

    It's simply not the case in reality (as measured by medium and large corporation implementation and support). Android and iOS use lead by a mile.
  • 0 Hide
    shqtth , October 3, 2012 3:08 PM
    WOW spread of more negative RIM articles, thanks tomshardware !

    Media websites just like to pick on RIM with a passion.
  • 0 Hide
    blurr91 , October 3, 2012 5:25 PM
    lamorpaYou forgot to phrase is as, "RIM users will forever maintain the false belief that their devices will always have something the others will never have...security. "It's simply not the case in reality (as measured by medium and large corporation implementation and support). Android and iOS use lead by a mile.


    Hmmm...same thing could be said about Mac users...
  • 0 Hide
    slomjh2 , October 3, 2012 6:52 PM
    RIM is dead all of corporate America who have up until recently allowed only RIM products to be used on their networks are now switching to android and iOS whole sale. I have a blackberry and will never have another for my company phone.