Amazon’s offer to buy-out RIM turned down

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Amazon’s bid to takeover Research In Motion Ltd was turned down by the latter. Other potential buyers offer to buy RIM has also taken a backseat.

An exclusive report from Reuters writes that Amazon has looked at the possibility of merging with RIM. They even hired an investment banking firm to take a look at the possible buy-out.

But RIM’s board wants Mike Lazaridis and Jim Balsillie, co-CEO’s of the brand, to look for ways on how to turn things around for their business through the launching of new devices, better use of assets such as the BlackBerry Messenger and restructuring.

Though RIM can hook up with other partners to increase sales, a total buy-out of the company is out of context.

One head of technology investment banking at a Wall Street Bank said, “they have had approaches from folks who have wanted to have discussions.” He also added that, “the issue is it is hard to find a value that makes sense with a falling knife.”

The company’s market value has dropped to 77 percent in the past year to about $6.8 billion following a unsatisfactory quarterly reports, late phone launches, weak sales of their PlayBook and other mistakes.

A U.S. based RIM investor noted that, “this story puts RIM in play, because shareholders are going to put it in play. It’s over. This is now a company where the activists are in charge.”

The activist he is referring to is Jaguar Financial Corp. The latter has called for a sale of RIM as a whole or in part.

But RIM management has said that they did not want to sell or even break up the company.

One source said that, “selling the company or an economic joint venture is probably not in the cards right now. Until you stabilize the platform, people are going to be very nervous about spending $10 billion or more.”