# Google Buying Motorola - Final Nail for RIM?



## LondonHomes (Dec 29, 2010)

Google annouced today that it's want to buy Motorola for $12.5B http://online.wsj.com/article/BT-CO-20110815-708280.html

It looks like they want to do this to help promotion there Android phone system.

After reading the article my first thought was that it cannot be good news for RIM. What do you think is this the final nail for RIM are they going to get squeezed out of the smart phone market?


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## brad (May 22, 2009)

There are still lots of companies who don't allow any smartphone to access their corporate network other than Blackberry; I work for a company like that and if you want to use Android or iPhone you have to fill out a long security form providing a justification and even then most times the requests get rejected. The apps for iPhone and especially Android are seen as a potential security risk.

This of course is not universally the case, there are a growing number of big corporations that allow iPhone and Android, but the more conservative and security-conscious ones are likely to stick with Blackberry as long as they can, because it's a more tightly controlled and closed system. 

The point that I've made several times here is that a company can have only a single-digit percentage share of the smartphone market and still make a good living: if RIM is smart they will accept that they will be a niche player and just cement themselves into that niche to ensure they hold onto it.


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## jamesbe (May 8, 2010)

Did you see the stock OMG 50% gain!


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## KaeJS (Sep 28, 2010)

jamesbe said:


> Did you see the stock OMG 50% gain!


I thought you were joking..... until I checked. 

And I don't even know why people are _still_ talking about RIM.

RIM is dead as dead can be. It's like a 95 year old man. What future does it really have? A few years and its gone.

Just wait for the headline:

GOOGLE to buy RIM for $xBillion


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## Abha (Jun 26, 2011)

KaeJS said:


> I thought you were joking..... until I checked.
> 
> And I don't even know why people are _still_ talking about RIM.
> 
> ...


I'm going to stick my neck out here but I think the odds of RIM being bought out in the next 12 - 18 months by a big player just increased dramatically.


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## FrugalTrader (Oct 13, 2008)

MSFT has over $50 billion in cash on its balance sheet. They could put in an offer to buyout RIM and still have a mountain of cash left over.


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## Financial Cents (Jul 22, 2010)

Microsoft is going to buy RIM before Christmas, just my opinion.


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## CanadianCapitalist (Mar 31, 2009)

I don't understand why Microsoft would buy RIM. Didn't they just tie up with the other dead man walking... aka Nokia?


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## Financial Cents (Jul 22, 2010)

They (MSFT) have to do something with their piles of cash, to compete with Google don't they? 

What about Apple, are they going to be allowed to run away with all the tech-toys?

Again, I'm probably wrong but I thought I'd throw out the prediction. MSFT has always been about software so maybe Nokia hardware is all they need....

CC - will you give me any odds on this forecast? 1,000:1 long-shot?


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## Abha (Jun 26, 2011)

Financial Cents said:


> They (MSFT) have to do something with their piles of cash, to compete with Google don't they?
> 
> What about Apple, are they going to be allowed to run away with all the tech-toys?
> 
> ...


Microsoft is all about the enterprise, where Nokia has no strengths. Microsoft can begin their assault on Google/Apple on two fronts.

1. Buy RIM and capture a huge segment of enterprise customers
2. Buy Nokia and gain some leverage into the consumer market.

They have the cash to do both, but my money is on Steve Balmer making the purchase of RIM the last thing he does before he leaves the CEO role.


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## slacker (Mar 8, 2010)

RIM seems like sure play for shorting, no? It is definitely going down, right?


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## sags (May 15, 2010)

Sounds like Google bought Motorola for their thousands of patents, as the Android platform is the subject of potentially expensive patent infringement lawsuits.

http://www.bnn.ca/News/2011/8/15/RIM-should-spin-off-and-monetize-its-patents-Analyst.aspx


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## Abha (Jun 26, 2011)

sags said:


> Sounds like Google bought Motorola for their thousands of patents, as the Android platform is the subject of potentially expensive patent infringement lawsuits.
> 
> http://www.bnn.ca/News/2011/8/15/RIM-should-spin-off-and-monetize-its-patents-Analyst.aspx


I think Google is also thinking TV as well in their purchase of Motorola. Don't forget the next battle after smart phones will be over "smart tv's".


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## LondonHomes (Dec 29, 2010)

brad said:


> The point that I've made several times here is that a company can have only a single-digit percentage share of the smartphone market and still make a good living: if RIM is smart they will accept that they will be a niche player and just cement themselves into that niche to ensure they hold onto it.



Your position makes a lot of sense. It's just disappointing that RIM ends up being a niche player in a market that they had a significant lead in for a long time.


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## brad (May 22, 2009)

LondonHomes said:


> It's just disappointing that RIM ends up being a niche player in a market that they had a significant lead in for a long time.


Q: How do you get a Canadian started in a small business?

A: Give him a big one, and wait.


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## LondonHomes (Dec 29, 2010)

brad said:


> Q: How do you get a Canadian started in a small business?
> 
> A: Give him a big one, and wait.


In this case I think that you missed the complete answer:

A: Give him a big one, and wait *for him to try and buy a hockey team*.


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## Causalien (Apr 4, 2009)

I believe MSFT will buy Nokia before RIM. There's a general consensus in the US that Canadian Engineers have a laissez-faire attitude.


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## kcowan (Jul 1, 2010)

RIM was a darling on The Street for many years because of their lock on the corporate market. It was held out as the little Canadian company that made good (even with the US government)!

But smartphones are now the new platform, replacing the PC for convenience, always on, etc. This is a battle that RIM would never be allowed to play alone. There is nothing you cannnot do on a smartphone. Dock it to a big screen and keyboard. Use the cloud for your storage.

If it were not for the high charges for data in Canada, I would just have a smart phone.


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