Research In Motion (NAS: RIMM) is moving higher today, as dueling reports find the BlackBerry maker at the center of amorous attention.

Reuters is reporting that (NAS: AMZN) brought in an investment banker this summer for exploratory talks on a RIM buyout. Sources are also telling The Wall Street Journal that a hungry Microsoft (NAS: MSFT) and a fretful Nokia (NYS: NOK) have had informal takeover talks.

Amazon's interest apparently diminished shortly after it started, without a formal offer being made. There's no update on where Microsoft and Nokia stand on a joint acquisition of the beleaguered RIM.

Let me save you the speculation, suspense, and aggravation. A deal isn't happening. RIM will die alone, leaving behind a dozen cats and even more regrets of the ones that got away.

I'm not trying to be mean. RIM is too proud to settle for settling down. The Reuters' source claims the Canadian smartphone pioneer has been telling interested parties that it doesn't want to entertain an acquisition. RIM also isn't exploring economic joint ventures -- along the lines of what Microsoft squared away with Nokia earlier this year -- or entertaining the sale of individual components including its patent portfolio or handset business.

Now we find RIM trading at an eight-year low -- off by a whopping 78% this year alone as of last night's close -- and it's the one being choosy.


Quite frankly, the rumored interest itself is surprising. Analysts see revenue and earnings falling this fiscal year, only to decline again in fiscal 2013. Why buy RIM now when it will only get cheaper down the line?

The bullish argument for RIM -- and it's no doubt what's clouding the company's judgment -- is that the stock has declined at a headier clip than its fundamentals. Obviously RIM isn't 78% less of a company than it was when the year began. It closed out its latest quarter with a record 75 million BlackBerry users!

Unfortunately, it's seeing things through BlackBerry goggles. Buying a smartphone platform -- at any price -- hasn't historically been a good decision. Hewlett-Packard (NYS: HPQ) no doubt wishes it could turn back the clock on its Palm acquisition.

If companies are brave or stupid enough to consider buyout offers or single out prized assets, then who is RIM to be the greedy one?  

The next trillion-dollar revolution will be in mobile, but it won't include RIM. If you want to cash in on the upcoming trend, a new report will get you up to speed. Yes, it's as free as this article, but it won't last forever so check it out now.

At the time this article was published Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for HP. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.The Motley Fool owns shares of and Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft and Motley Fool newsletter services have recommended creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Min Zhu

Don't blame CEO, they want RIM win.

RIM has strange culture and self distruct political environment.

In RIM if a new hired person figure out major problem and introduce efficient approach, both manager and his buddy group member will proof their wrong approach works. just like someone point out driving a car is right way, pushing a car is wrong way, then both manager and his buddy group member will hate you, and proof that 3 person can also move the car by pushing it. cheating email will be sent to some vice president, saying like: see, the car moving, pushing a car is a natural part of the process, in order to deny new hired contribution of introducing skill of drive a car, they have to deny merit of driving a car.

It is very strange company culture and strange company political environment, it promote stealing and cheating skill. RIM's management may be a typical instance in MBA course.

This culture deny or steal hardworking team members' contribution/innovation, generate strange political environment, destroy RIM.

So don't blame CEO, some of their VPs and VPs' expert generate terrible culture and self destruct political environment.

January 23 2012 at 8:51 PM Report abuse rate up rate down Reply

As the old saying goes, if you can't stand the heat get out of the kitchen. In Rim's case, too much competition killed the golden goose as it wil also kill other competitors that can't compete in a very competitive arena. Right now Apple is king but it too is looking over it's shoulder to see who's catching up.

December 21 2011 at 11:47 AM Report abuse rate up rate down Reply

Maybe a company name change is in order......."Black&BlueBerry".

December 21 2011 at 11:22 AM Report abuse rate up rate down Reply