Stock Under $10 with 50-100% upside potential - 14 Days FREE!

Microsoft, RIM: A Match Made in Heaven?

Stock quotes in this article: RIMM, MSFT, NOK 

NEW YORK (TheStreet) -- Research in Motion's (RIMM) problems may be mounting, but the troubled handset maker could still offer rich pickings for Microsoft (MSFT), according to experts.

"I think that the best opportunity for them is to be acquired by Microsoft," explained Paul Amsellem, president of The Mobile Network Group, a Paris, France-based mobile marketing company. "The future of RIM is probably in Microsoft's hands."

The pressure's mounting on embattled handset maker RIM

There has, of course, already been speculation that Microsoft could buy another under-performing phone giant: Nokia (NOK). The software behemoth has a close relationship with Nokia, so a merger would make sense, particularly as Microsoft prepares its Windows 8 onslaught.

Amsellem, however, thinks that Microsoft and RIM could be a match made in heaven, citing RIM's strengths in email, instant messaging and data compression algorithms.

"It would be useful for Microsoft to use these assets to enrich the Windows 8 platform," he told TheStreet, adding that the algorithm can help service providers ease the traffic burden on strained networks.

Another expert agrees that Microsoft could grab RIM, but warns that other big-name tech firms could also be in the hunt for the beleaguered phone maker.

"Potential logical buyers include Amazon (AMZN), Microsoft, Samsung, HTC, Nokia, and possibly Facebook (FB) (should it decide it needs to be in the mobile device business)," explained Shaw Wu, an analyst at Sterne Agee, in a note released earlier this week.

On Tuesday RIM forecast an operating loss for its fiscal first quarter, and said it has hired bankers to help with its ongoing strategic review. RIM also announced plans to cut its work force, adding to the storm clouds gathering around the company.

Rocked by delayed product launches, and fierce competition from Apple (AAPL), Google's (GOOG) Android phones, and, increasingly, Microsoft's Windows phones, investors have fled RIM in droves.

The company's stock is down more than 28% this year and even the first glimpse of the long overdue BlackBerry 10 operating system earlier this month has done nothing to placate investors.

Initially expected in 2011, RIM has said the technology will make its debut in the second half of 2012.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
TRY IT FREE

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
Dividend Stock Advisor
TRY IT FREE
New! $49.95/yr

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREE

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Real Money
TRY IT FREE

24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.

Product Features:
  • Jim Cramer + 20 Wall Street pros
  • Intraday commentary & news
  • Real-time trading forum
  • Actionable trade ideas
Real Money Pro
TRY IT FREE

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass + 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
TRY IT FREE

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 15,335.28 -19.12 -0.12%
NASDAQ 3,496.43 -2.54 -0.07%
S&P 500 1,666.29 -1.18 -0.07%
US 10 Yr 1.965% +0.016

Brokerage Partners

Advertising Partners
Special Features

Free Newsletters from TheStreet

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy. Manage Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs