Amazon Considered A RIM Acquisition This Past Summer

Research in Motion (RIM) is in a lot of trouble and they know it. The maker of of the Blackberry smartphones has not made much headway in the product category this year. The only thing that people are actually expecting from RIM is the new QNX based OS they are going to launch.
But unfortunately, these devices will not see the light of day till late next year, which really is a big downer! As other platforms continue to grow and advance, their platform is currently languishing because of these problems. Their venture into the tablet market with ‘Playbook’ has also not been very successful. All in all, a very dismalyear for these guys.Now imagine what would this year be like for them had Amazon bought them over. Yes, it would definitely be very interesting. Amazon had briefly considered buying out the troubled company to further their own advances into the mobile segment. Both the companies are tight-lipped about anything any suggestions of a buyout but Reuters is reporting that there were some informal talks between the two companies during this past summer. Besides Amazon, bankers were also trying to convince RIM’s competitors HTC and Samsung to buy out the ailing company but they chose not to.

Let us try to understand why this buyout would make sense to Amazon. Amazon is a huge online retail company but besides their Kindle reader they had made much headway into the mobile computing segment earlier. With RIM’s devices and the substantial patents that it has, it would have made perfect sense for Amazon to acquire RIM. But since the talks didn’t go down well, Amazon focused on Android. They have just released their Kindle Fire and also invested in their own app store.

RIM has thus chosen to face the future alone but it is very risky business for the Canadian technology company. The company’s board has rejected the notion of selling off parts of RIM’s business. The company seems to have undertaken a campaign to be hopeful about their future. The two CEOs from RIM have also proactively reduced their pay to $1 per year. Whether or not such tactics will work for RIM to steer clear of troubled waters, only time will tell.

What is your opinion about RIM’s future in India? Let us know.

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