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Lenovo May Actually Buy RIM To Boost Mobile Arm

By - Source: Bloomberg | B 10 comments

Lenovo's CFO has admitted that RIM is one of many possible acquisitions being considered by the PC maker.

In an interview at the World Economic Forum’s annual meeting in Davos, Switzerland, Lenovo Group Chief Financial Officer Wong Wai Ming said that the company is currently accessing potential acquisition targets and strategic alliances, one of which is struggling BlackBerry maker Research In Motion (RIM).

"We are looking at all opportunities -- RIM and many others," Wong revealed. "We’ll have no hesitation if the right opportunity comes along that could benefit us and shareholders."

News of a possible deal arrives just days before RIM officially launches its new BlackBerry 10 platform on January 30, 2013. This will reportedly be a make-it-or-break-it launch for the company as it struggles to regain smartphone market share from Google, Samsung and Apple.

The first two BlackBerry 10 phones will be introduced next week: the BlackBerry Z10 and the BlackBerry X10, the latter of which will feature a physical QWERTRY keyboard. Four additional BlackBerry 10 devices are expected to launch sometime in the first half of 2013.

RIM began to review its strategic options last year and seemingly became a takeover target for companies wanting the BlackBerry brand and services. Potential buyer Lenovo is just one of many companies looking to fatten their mobile profile as PC sales decline due to consumers flocking to smartphones and tablets as their central computing platform.

Currently Lenovo doesn't have a strong smartphone portfolio in North America, making RIM an ideal acquisition candidate. But an acquisition would require approval from both U.S. and Canadian regulators because of the size of the transaction and because RIM operates secure mobile networks for government agencies, Bloomberg said on Thursday.

During the interview, Wong noted that RIM's stock price recently jumped back up into the double digits. Shares have almost tripled since September 2012, fueled by BlackBerry 10 and what the strategic review may produce. As of Thursday afternoon, RIM had climbed as much as 5.6-percent to $18.32, and was up 2.7-percent at $17.81 just after noon in New York.

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  • 4 Hide
    plznote , January 24, 2013 11:04 PM
    The Canadian Government wouldn't allow it imo.
    We are already super-protective about our "native" media and companies.
  • 5 Hide
    walter87 , January 24, 2013 11:52 PM
    plznoteThe Canadian Government wouldn't allow it imo. We are already super-protective about our "native" media and companies.

    I also don't see RIM willing to sell with all the momentum they have received building up until there BB10 launch.

    Also with recent Chinese companies purchasing Canadian oil companies, the Canadian Government has imposed a stricter policy when it comes to foreign takeover of Canadian companies (especially for Chinese companies)
  • 2 Hide
    bejabbers , January 25, 2013 12:16 AM
    plznoteThe Canadian Government wouldn't allow it imo. We are already super-protective about our "native" media and companies.

    Have you forgotten about Nortel? The Canadian government didn't seem to care about the largest private employer in the country going bankrupt.
  • 1 Hide
    sykozis , January 25, 2013 12:33 AM
    Would be a bit irresponsible for the Canadian Gov't to allow RIM to fold if BB10 is a complete flop.....which is the only scenario I can see in which Lenovo would have a real shot at RIM.... Hopefully that doesn't happen though.
  • 0 Hide
    fuzzion , January 25, 2013 2:22 AM
    They bought the IBM thinkpad, a RIM buyout could be possible.
  • -1 Hide
    meltbox360 , January 25, 2013 4:36 AM
    fuzzionThey bought the IBM thinkpad, a RIM buyout could be possible.

    I would rather not see it happen. My personal feeling is Lenovo ruined the ThinkPad by making it so flimsy and cheap looking/feeling. A shame really...
  • 0 Hide
    morne , January 25, 2013 10:59 AM
    If this happens bye bye Blackberry for me
  • 1 Hide
    dozerman , January 25, 2013 1:17 PM
    Stupid rumors. RIM isn't selling out, they have a winning product and they know it.
  • 0 Hide
    icemunk , January 25, 2013 2:45 PM
    The new BBs look promising, and and BB10 is great. As much as I like my android, the lack of real security built in is a bit annoying. I install a StopWatch app and it asks "We need access to your location, name, phone number, phone calls, history, etc". Android is nice, but has no real security.
  • 0 Hide
    juanc , January 25, 2013 3:14 PM
    meltbox360I would rather not see it happen. My personal feeling is Lenovo ruined the ThinkPad by making it so flimsy and cheap looking/feeling. A shame really...


    True, but still better than the rest out there. It would be great to have a mix of models, the though ones and the girly ones.