With their handset business slipping into oblivion, RIM is supposedly considering selling it off to Amazon or Facebook, licensing its messaging technology or accepting equity investment from Microsoft, if sources are to be believed. With platforms like iOS, Android and Windows Phone fast gobbling up the market, developers are turning away from wanting to designs apps for BlackBerry.
If RIM is to save their dwindling position, it has few options available. If a company like Amazon decides to manufacture smartphones, they will opt for a merger into mobile commerce since they already have much needed information about the buying habits of users and their credit card information. They could also put to use the mobile content and other information services they have built till now for the Kindle Fire and the Kindle. However, Amazon buying RIM’s hardware business does not seem likely as it would go against their policy of manufacturing low cost hardware, instead, RIM would rather approach Asian handset makers.
With Facebook, things do not look any brighter. If the company is keen on establishing themselves on the mobile software platform, they are going to need money to do so. Relying on Apple and Android for this purpose is not a wise option for Facebook. Purchasing RIM’s handset business will place Facebook in an important position, providing it with assets which would have taken years to build otherwise. However, this integration might prove to be a distraction for the social networking site, impacting their already slow revenue growth.
If Microsoft considers investing in RIM, it will help them gain control of RIM’s enterprise business. They could use this to the advantage of Exchange Server, Microsoft’s email server business, beating competitors like IBM. This move might also enable them to offer a secure messaging service on Windows Phone, similar to what RIM offers on BlackBerry. There is also a chance of Microsoft wanting to then integrate BB 10 with its services like Xbox Music and Skype. In a three way deal, Microsoft could also help Facebook buy RIM’s handset business since they own some stake in Facebook and have been pushing for Windows Phone to be the mobile platform for Facebook.
Rim could also consider licensing their messaging technology, subsequently enabling Google and Android to offer the same levels of security as RIM. They could also opt for a patent-licensing strategy for their benefit.
