Research in Motion, Struggling, Ponders a Dim Future
By MICHAEL J. DE LA MERCED MAY 31, 2012
After rejecting the idea of a sale for months, Research in Motion acknowledged on Tuesday that it was considering "strategic business model alternatives" - or in banker's speak, RIM, which makes the BlackBerry, said it was pondering a potential deal for all or parts of the company.
But did it wait too long?
A year ago, RIM, a Canadian company, became the subject of takeover rumors, after Google's $12.5 billion deal for Motorola Mobility. Then, analysts believed that RIM would draw interest from Microsoft, Amazon.com or any number of Chinese phone manufacturers who could afford what would have been a pricey deal.
The company's executives rebuffed the idea, arguing that RIM was on the verge of a turnaround. New phones were coming that combined touch-screens with BlackBerry's e-mail and security features. And the PlayBook, with an industrial-strength operating system, could stand toe to toe with the iPad.
But RIM's prospects have withered since. In March, the company disclosed that its quarterly sales had plunged 20 percent from the previous quarter, as customers migrated to iPhones and Android devices. The company warned on Tuesday that it expected another loss.
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