Rumours lifts Research In Motion shares in US Stock Market

Shares of Research In Motion (RIM), the company that makes Blackberry devices, have increased in the US market by almost 10% after news suggesting that Amazon and Nokia have stepped in as the potential suitors.

The Canadian firm are facing serious difficulties at the moment due to the accumulation of setbacks with their latest products.

It was earlier reported that Research In Motion had rejected an Amazon’s offer to purchase their online sales service. It was also reported that that there were more companies interested in the Canadian firm, with interest lying
primarily in their operating system for phones and tablets respectively.

According to some reports, the Blackberry manufacturers had resisted different proposals, although they earlier discussed closer trade relations with Amazon.

If speculations are to believed, Microsoft and Nokia are considering making a joint bid for the maker of the Blackberry in the pursuit of their signatures.

RIM is showing an interest in Amazon (the largest e-commerce firm, with sales of 9910 billion in the second quarter of this year) by noting that the Seattle Company does not make money just selling books on the Internet and they
rather have growing departments in data infrastructure with new services such as viewing of audiovisual content.

The basic Amazon’s strength is to move content through the network and by controlling the infrastructure. Amazon, in fact, are the pioneers in cloud computing, where the tech masters anticipate tough battle for generating
revenue.

Cloud Drive launched in March is a service that allows users to store music files on their servers and access content from computer, mobile phone or any other electronic device. They put more emphasis on digital products such as
electronic books. In this context, the contribution of RIM could be destabilizing.

In recent months, the market continues to innovate and experiencing similar technological changes resulting from the need to accumulate technological patents.

In August Google, also a handset maker, announced the purchase of Motorola Mobility, which endowed them with the capacity to manufacture their own devices. The transaction was priced at 12,500 million (8,700 million Euros).

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Posted by Farasat Ali on Dec 22 2011. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry