Wednesday, December 21, 2011

RIM rejects Amazon's takeover offer

Amazon said to have had merger talks with RIM BlackBerry manufacturer, while Nokia and Microsoft are also seen as an attempt

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the manufacturer of the BlackBerry Motion rejected proposals to acquire Amazon.com, Microsoft and Nokia, while considering a bid for the maker of smart phones with problems, according to sources.

Amazon hired an investment bank this summer to discuss a possible merger with RIM, but made a formal offer, a source told Reuters.

Whether informal discussions have not led to speak of specific prices.

RIM

An investor who declined to be identified said the company now mainly for sale.

"This story puts RIM in the game, because shareholders are at stake," said U.S. investor. "It's over. It is now a society where militants are responsible . "

shares battered in the smartphone manufacturer in Canada increased by 10% after the close of the Nasdaq Stock Market after the Reuters report.

Value

RIM

But the market fell by 77% over the last 12 months to a value of approximately $ 6.8 billion (£ 4.3 billion) - below its "book value" of assets - after a series of disappointing quarterly reports, delay launches phone, weak sales of the tablet PlayBook and mistakes of others.

dropped from last week on weaker than expected quarterly results, which saw profits fall 70%, and the announcement of a delay in the launch of 10 new BlackBerry phones late 2012.

Council wants RIM co-CEO Mike Lazaridis and Jim Balsillie to focus on trying to turn around the company with the launch of new phones, better use of assets such as messaging and BlackBerry restructuring, two sources told Reuters.

RIM and Amazon declined to comment.

The Wall Street Journal reported that Microsoft and Nokia, who have come together to produce phones that run the Windows Phone, explored the idea of ??a joint bid, and that senior three companies "often meet to discuss ways to improve their relations."

A source confirmed to Reuters that Microsoft and Nokia have explored the idea of ??an agreement.

While RIM could reach agreements to license technology and other professional associations to increase revenues, direct sales or joint venture is not considered in the cards for now.

After the news last week, the Council instructed the co-CEO set aside for the put options, a person familiar with the situation.

"The sale of the company or a joint financial company is not likely in the cards right now," said the source. "Until we stabilize the platform, people will be very nervous about spending 10 billion or more."

Some potential suitors private and corporate capital are resistant to the evaluation of RIM continue to decline, according to sources.


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