Reuters: RIM’s options include network sale, Microsoft bail-out

Earlier today, RIM announced its quarterly earnings and the results were grim. The company’s revenue is down 33 percent year over year and device sales are slumping. To make a bad situation even worse, RIM announced that technical challenges have forced it to delay the launch of BlackBerry 10 until 2013.  As result of this disappointing news, the company’s stock fell 14% percent in after-hours trading and people are predicting the inevitable demise of RIM as we know it.

Speaking to sources familiar with the matter, Reuters says RIM’s board of directors is under pressure to make significant changes that’ll reverse this downward slide. The company is reportedly considering an alliance of some sorts with Microsoft. This option would let RIM drop development of the QNX-based BlackBerry 10 and adopt Windows Phone as it primary operating system. Under this plan, RIM would no longer be an independent company and would rely on Microsoft to fund some its research and development. Microsoft

Another option would be the sale of RIM’s network infrastructure to a private equity firm. RIM could spin off this part of its business and let the buyer open it up to other handsets. In this scenario, RIM’s network would be considered an asset, which leaves room to legally split the network business from the handset business if it fails.

[Via Reuters]

  • Anonymous

    Kelly Hodgkins, are you serious RIM would adopt WP8 OS instead of the QNX-based BlackBerry 10  like Nokia did? 

  • Boss Nova

    I really hope Google is engaging with RIM to offer an alternative. I can see where some companies feel they will be overlooked in the giant sea of Android devices; but Windows?

     Take Samsung for instant, A few years ago I brought one of their phones on Sprint: no Android, just whatever they used. I would have never thought that Samsung would be at the top of the Industry today by way of Android. RIM still has some chips that valuable, but Android is activating 1 Million devices a day, Think RIM, Think 

Back to top ▴