Blackberry maker RIM might be subject to a takeover: New York Times

According to a report published by New York Times (NYT), Blackberry maker Research In Motion (RIM) might be in for a take over by another IT giant. The report of a possible acquisition of the Canadian manufacturer has sent its stock soaring up by 10 per cent. 

RIM has failed to match up with major brands such as Apple and Google leading to a significant decrease in its market share over the years.  With its prospects decreasing everyday, RIM has become the subject of takeover gossip. After Google’s takeover of Motorola Mobility earlier this week, RIM might be next in line for a takeover.

Adam Leach, a market analyst told New York Times, "for a long while the market cap of RIM prevented any kind of takeover. I’m certainly not writing them off now, but they have got a tough job."

However Tenille Kenndey, the RIM spokesperson has commented,"the company does not comment on rumors and speculations."

RIM capitulated the smartphone market with its first Blackberry over a decade ago. Since then, it has introduced revolutionary features such as push, wireless mail and a messaging center. Blackberry Messenger (BBM) is even today considered the USP of Blackberry phones. But since the launch of phones such as the iPhone, the company has been on the downside.    

In an effort to pickup lost strands, Blackberry simultaneously introduced three smartphone handsets - the Bold 9900, Blackberry Torch 9810 and Blackberry Torch 9860. Still, its handsets lacked many features. For example - all of them run on a single-core processor while the market has moved on to dual-core processors. RIM's Blackberry Playbook also fizzled out on the sales tab.

RIM market share and its inability to rapidly innovate are working against the smartphone manufacturer. If the situation continues, RIM would be helpless in event of a takeover. 

According to the NYT report, the chance of a takeover seems minutes for now. In the event that the takeover does take place, it would have to be first approved by its CEO-duo of Jim Ballsillie and Mike Lazaridis. Then it would need the approval of the Canadian government, as Blackberry assets might be strategic to the country. The takeover would have to be finally approved by RIM's minority shareholders.

RIM’s potential suitors include not only major brands such as Microsoft and HTC, but even cash-rich Chinese companies such as ZTE and Huawei.