Reuters: RIM Might Sell Its Network Or Form An Alliance With Microsoft

As the shares of Research In Motion continue to plunge at a steeper than expected rate, the Canadian company’s executives are facing an immense pressure to come to a decision whether to sell the network business or form an alliance with Microsoft, reports Reuters. The Blackberry maker has once again delayed the release of its next-generation smartphones announcing that the launch of BlackBerry 10 mobile devices has now been postponed to early 2013 because the development of its new operating system had “proven to be more time-consuming than anticipated”.

The report points out that the latest setback has increased pressure on RIM’s board to more seriously explore other options. One of these options is for RIM to abandon its own operating system and adopt Microsoft’s upcoming Windows 8. Another option for RIM would be to sell its proprietary network to a private equity firm or a technology company.

Citing the news source:

Microsoft CEO Steve Ballmer approached RIM shortly after Balsillie’s departure, looking to strike a partnership similar to the one the software giant has with Nokia Oyj, the sources said. Under that partnership, Nokia will use Microsoft’s latest Windows operating system on its smartphones.

In such a scenario, RIM could also look for Microsoft to buy a stake in the company and fund marketing and other expenses, the sources said. However, this option is not attractive to RIM because it would mean the end of the Waterloo, Ontario-based company’s technology independence.

The RIM board still prefers to see through the efforts to develop the new operating system.

In case RIM decides to sell is proprietary network, the company’s smartphone business is likely to have no future at all.

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  • Networx

    RIM has blinders on if they think they can still develop an iPhone killer at this point. RIM as we’ve known it will either disappear in a merger with Microsoft or it’ll just disappear from lack of sales. Either way, it’ll never be what it was and you don’t have to be a business genius to see that coming. Certainly their investors have seen the light and are getting out while they still can. Damned shame to see a Canadian success story fall so quickly from stardom. Guess no one learned from Nortel.

  • einsteinbqat

    wow that is crazy stuff! Just like Nortel. Once huge Canadian tech flagship, and then huge disaster!

  • JMCD23

    Whoever picks them up will get their patents. Whoever that is, apple will have incoming lawsuits from.

  • FragilityG4

    With a hundred billion war chest in their hands, I’m sure Apple will have no worries if your prediction somehow came to fruition.

  • JMCD23

    It will happen, it already is. Lawsuits don’t mean they’ll be hurt for money, I never said that – you implied it.

  • FragilityG4

    Yes but you’re implying that Apple should be concerened … I don’t believe they will … Lawsuits are part of business … Look at Samsung vs. Apple