Microsoft unlikely to buy out Research In Motion (RIM)

Microsoft Corporation has been linked to Research In Motion’s (RIM) purchase of late but according to a research conducted by Nomura software analyst, Rick Sherlund, the acquisition is unlikely to happen.

RIM, famous for their smartphone Blackberry, are out for a bid on their stocks enlisted at New York Stock Exchange and NASDAQ. It was expected that Microsoft might be interested in buying out one of their major competitors in smartphone business.

However, according to Sherlund, the marriage is far beyond impossible to happen mainly because of the bayed interests and separate platforms.

Windows Phone 8 is right around the corner and Microsoft has close relationship with Nokia to conceive the brainchild in 2012. On the other hand Blackberry OS works on an entirely different platform and is incompatible to MS operating systems in clear contrast.

“Microsoft has its own operating system strategy with Windows Phone 8 due out next year, which it has been collaborating on with Nokia. This operating system is not compatible with that of RIMM, and to alter course for either company at this juncture would
likely be imprudent.,” he writes in a research note.

Moreover, MS were also hinted as an interesting party to purchase a major stake in Yahoo that might result in the Japanese company’s acquisition. However, according to Sherlund, the software giant already has strategic relationship with Yahoo and has achieved
perceived scale in online search. Sherlund further hinted a possibility that MS might join the group interested in buying small stake in Yahoo for good future relationships.

“Microsoft has the benefit of scale in search through their current relationship with Yahoo and see no need to acquire the company,” he writes. “It is possible that Microsoft may be part of a larger group to invest in a minority position in Yahoo for some
strategic business relationship.”

Both RIM (RIMM) and Yahoo (YHOO) traded high in the stock market this week whereas MSFT stock hit a puddle in their prices.

• RIMM is up 69 cents, or 3.9%, to $18.55
• YHOO is up 60 cents, or 3.8%, to $16.31
• MSFT is down 25 cents, or 1%, to $25.33

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Posted by Usman Khalid on Dec 2 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry