Biggest Loser in Google/Motorola Deal? No Surprise Here...
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Get Alerts RIMM Hot Sheet
Price: $14.64 +12.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
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According to one IDC analyst, Research In Motion (Nasdaq: RIMM) is expected to be the biggest loser from the recent $12.5 billion proposed acquisition of Motorola Mobility (NYSE: MMI) by Google (Nasdaq: GOOG).
RIM may be in a weaker position moving forward, and may either need to partner with another company or sell itself to remain competitive. Google's cash and software development experience will aim to hit RIM where it has traditionally had a stronger lock: the corporate environment.
Another analyst said suitors in a possible RIM acquisition may include Hewlett-Packard (NYSE: HPQ), Dell (Nasdaq: DELL), Samsung, or HTC. Hewlett-Packard may be a longer stretch, considering the company recently acquired Palm for its mobile devices.
RIM closed 10.4 percent higher Monday following reports of the acquisition by Google, indicating investors may believe RIM is next in line to be acquired. Prior to Monday's move, RIM shares were down about 53 percent on the year as it continues to cede mobile market share to rivals using Google's Android OS and Apple's (Nasdaq: AAPL) iOS.
Recently, wireless giants have been more interested than ever to gain intellectual property in order to protect or increase patent portfolios. RIM currently has 2,033 U.S. patents, far short of the 17,000 owned by Motorola. Still, the patent acquisition might just be a bonus in addition to gaining RIMs tech portfolio and reach.
RIM shares are trading 1.9 percent lower this morning.
RIM may be in a weaker position moving forward, and may either need to partner with another company or sell itself to remain competitive. Google's cash and software development experience will aim to hit RIM where it has traditionally had a stronger lock: the corporate environment.
Another analyst said suitors in a possible RIM acquisition may include Hewlett-Packard (NYSE: HPQ), Dell (Nasdaq: DELL), Samsung, or HTC. Hewlett-Packard may be a longer stretch, considering the company recently acquired Palm for its mobile devices.
RIM closed 10.4 percent higher Monday following reports of the acquisition by Google, indicating investors may believe RIM is next in line to be acquired. Prior to Monday's move, RIM shares were down about 53 percent on the year as it continues to cede mobile market share to rivals using Google's Android OS and Apple's (Nasdaq: AAPL) iOS.
Recently, wireless giants have been more interested than ever to gain intellectual property in order to protect or increase patent portfolios. RIM currently has 2,033 U.S. patents, far short of the 17,000 owned by Motorola. Still, the patent acquisition might just be a bonus in addition to gaining RIMs tech portfolio and reach.
RIM shares are trading 1.9 percent lower this morning.
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