RIM Looks to Samsung for Possible Sale, Report Says
Research in Motion may be looking to Samsung for an SOS to help save its flailing company. The maker of BlackBerry devices and the electronics giant are reportedly in talks to sell divisions of RIM -- or alternately, the entire company, according to unnamed sources in an article at BGR.
A successful deal could help stall the decline of RIM, which has recently struggled to stay relevant in the wake of flawed business choices, a service blackout and weak product pipelines. Samsung, whose array of smartphones run on Google's Android operating system, could benefit from the acquisition with strengthened market share and better email and messaging technology.
The potential deal is stagnating due to co-CEOs at RIM that are requesting too high of prices, according to the report. Despite a net worth of around $8.5 billion at RIM's current share price, executives are looking for between $12 to $15 billion, BGR said. It's an ambitious demand, given the fact that some consider the company to be overvalued as it is.
Fewer Americans are using BlackBerrys as the company fails to impress users. The share of U.S. mobile-phone subscribers in the three months through November dropped to 6.5 percent from 7.1 percent in the previous quarter, according to Bloomberg. RIM's stock dropped 75 percent last year, but has seen intermittent jumps in recent months as investors speculate on possible takeover bids.