Updated: Samsung to buy RIM?

By Allie Coyne on Jan 18, 2012 9:44 AM
Filed under Mobility

Shares up eight percent on Tuesday.

Update: Samsung has quashed reports involving a possible acquisition of RIM, telling Reuters it had not been approached by the BlackBerry maker and was not in negotiations for a takeover. 

"We haven't considered acquiring the firm and are not interested in (buying RIM)," a Samsung spokesperson told the news agency. 

A report suggesting RIM is looking to sell itself to rival Samsung caused its shares to soar over eight percent last night.

Quoting unidentified sources, tech blog Boy Genius Report said the troubled BlackBerry maker was actively looking to sell one or more divisions, or even the entire company, to several interested parties including fellow smartphone maker Samsung.

Earlier this month, rumours emerged that RIM was in talks to license its software to other vendors.

According to Boy Genius Report, RIM CEO Jim Balsillie was gunning for a Samsung sale and negotiations were underway, but RIM’s asking price of between $US12 billion and $US15 billion for a full sale was too high.

RIM shares hit $US17.83 on the NASDAQ yesterday afternoon, up 10.3 percent, Reuters reported. They were valued at $US17.47 -- up 8.04 percent from the previous day -- when the market closed.

RIM declined to comment on the report.

The news follows several troubled months for the BlackBerry maker as it struggles to remain relevant in an increasingly competitive mobile market.

The company posted revenue of $US5.2 billion ($A5.2 billion) in Q3 last year, down six percent from the year prior. Its net income for the quarter dropped significantly from $US911 million last year to $US265 million.

Lacklustre PlayBook tablet sales, costing the company $US485 million, were partly to blame.

The company is also rumoured to be ditching two smartphones planned for launch this year. The December release of the touchscreen Milan phone and the QWERTY-keyboard Colt models, running its new BlackBerry 10 OS, has been delayed indefinitely.

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Updated: Samsung to buy RIM?
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