RIM Stocks Rise After Samsung Licensing Report

Bloomberg reports that Research In Motion shares rose 4.2-percent to $7.62 at the close in New York on Tuesday after a report surfaced claiming the BlackBerry company is currently trying to negotiate licensing deals with Samsung.

This isn't the first time Samsung has been associated with RIM. In a recent interview with The Telegraph, RIM CEO Thorsten Heins talked about building a BlackBerry 10 reference system and licensing out that design to phone manufacturers. In turn, these handset makers would "build the hardware around it – either it’s a BlackBerry or it’s something else being built on the BlackBerry platform." Both Samsung and Sony were mentioned in the interview.

"We’re investigating this and it’s way too early to get into any details," he said. "We have to also model this from a finance perspective – that’s why we’re working with the financial advisers to see if we do this where would it take the company. Either we do it ourselves or we do it with a partner. But we will not abandon the subscriber base."

But on Tuesday Samsung was associated with RIM again, this time by Peter Misek, a Jefferies analyst. "Samsung is considering ramping up its internal development efforts, licensing BB10 or buying RIM," he said. "Samsung is undecided."

Samsung, one of Google's biggest customers in the Android market, seems to be a prime candidate for BlackBerry 10 licensing or an all-out RIM purchase. With two popular mobile platforms at hand, the smartphone maker could find itself on better ground to tackle Apple's iPhone and possibly even the iPad if the company licenses PlayBook 2.0 as well. Samsung could even gain a portfolio of patents if it does choose to purchase RIM.

However a RIM acquisition could give Samsung full control over BlackBerry Messenger, RIM's current upper hand in the smartphone market. "[BBM is] what attracts people to BlackBerry," Heins recently said. "This is our BlackBerry experience we can deliver -- there’s no other system out there where you can read, write, check if you’ve read my message. We want to make it as differentiated as possible. Going cross platform and opening up would be losing that advantage. I think there’s a huge difference between somebody who just provides the phone and the hardware and someone who provides services."

RIM's share of the global market was only 4.8-percent in the second quarter, down from 12-percent the year before. Google's Android OS climbed to 68-percent in the same quarter while Apple's own iPhone dropped down to 17-percent. RIM's CEO admitted that the company considered switching to Android before moving forward with the development of BlackBerry 10.

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  • Vorador2
    It would make sense for Samsung to buy RIM...if only for their sizeable patent portfolio
    Reply
  • icemunk
    I think the stock rise has more to do with the patent case, and the jury verdict being overturned. (RIM no longer has to pay $150 million to a US patent troll).
    Reply
  • southernshark
    False hope. That's what Kodak kept saying, that it was going to license out its patents. The RIM patents might be worth a little more than Kodak's but that won't stop the bleeding.

    I think the stock rise was due to short sellers cashing in.
    Reply
  • belardo
    LOL... perhaps the only thing that may happen... Samsung buys RIM in 2013, when its just on its last breath, with less than 200million in the bank, which would give them a few months of life. Take the patents, re-engineer BBM into an Android product that they SELL for a business line of phones... face it, most people don't need BBM.

    Since Samsung doesn't make a clone of the iPhone... and they have been in the phone business far longer than Apple... then I hope Samsung can bitch slap Apple in court. And then both companies can actually compete with technology.
    Reply
  • eddieroolz
    This could be like the worst dream come true, but it won't happen - RIM has enough money in the bank to survive for years, and it's still making money, just not as much.

    It's amazing what these "analysts" can say.
    Reply
  • tntom
    I would rather Google buy out RIM personally. Though that would be hard for RIM users who want to avoid Google.
    Reply
  • law shay
    belardoLOL... perhaps the only thing that may happen... Samsung buys RIM in 2013, when its just on its last breath, with less than 200million in the bank, which would give them a few months of life. Take the patents, re-engineer BBM into an Android product that they SELL for a business line of phones... face it, most people don't need BBM.Since Samsung doesn't make a clone of the iPhone... and they have been in the phone business far longer than Apple... then I hope Samsung can bitch slap Apple in court. And then both companies can actually compete with technology.
    I agree. Afterall, Samsung is working on xxxHubs - GameHub, SocialHub, ReaderHub, ThisHub and ThatHub. They'd compete Apple using their own IM platform. Samsung even has their own app store and cloud storage -- mind you.
    Reply
  • belardo
    And who actually uses those? How many of those are real? I don't see any HUBs on my Samsung phone. Amazon, B&N, and anyone else with a computer can have a cloud system. Its nothing special, just like a rectangle with curved corners.

    Really, I'm not sure why Samsung doesn't bring in one of their LCD monitors from the 2004... Does it really look any different any other touch-screen phone?
    Reply