This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Microsoft, RIM: A Match Made in Heaven?

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 - Get Report), 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 - Get Report). 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.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSFT $49.87 0.00%
NOK $5.87 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs