IBM pursuing acquisition of RIM's business division for enterprises - Bloomberg (rephrased)
In a significant move, Research in Motion (RIM) has announced plans to cut 5,000 jobs, representing a third of its workforce. This decision comes as the company grapples with financial struggles and a delayed launch of its much-anticipated Blackberry 10 operating system.
In an effort to revitalise the company, CEO Thorsten Heins has expressed a preference for finding a partner or licensing Blackberry OS, but selling part or all of the business might also be considered. RIM has hired JPMorgan Chase & Co. and RBC Capital Markets to study its strategic options, but as of now, there is no information about a potential buyer interested in the Enterprise Services Division of Research in Motion.
The acquisition discussion seems to be focused on RIM's back-end network infrastructure service division, not the device business. This comes as IBM, a leading player in the mobile computing market, has made an informal approach to RIM to discuss the possibility of acquiring its enterprise services division. However, the terms or the status of the potential acquisition have not been specified in the report.
While RIM grapples with these decisions, the stock market today is expected to grow from £22 billion in 2012 to $36 billion by 2016, according to IBM's predictions. This growth is reflected in IBM's latest survey of CIOs, which revealed that three quarters are pursuing a mobile strategy to enhance employee productivity.
RIM acknowledges a delay in adapting to the bring-your-own-device (BYOD) movement, resulting in a slowdown of enterprise subscriber growth. In response, CEO Heins has expressed a commitment to reclaiming lost market share in the enterprise space.
In an attempt to reverse its fortunes, RIM has delayed the launch of Blackberry 10, its new operating system. The company is likely to hold off making a decision until the release of smartphones running Blackberry 10 next year.
As RIM navigates these challenges, it faces stiff competition from tech giants like Apple and Google. The company's future remains uncertain, but one thing is clear: RIM is determined to stay competitive in the rapidly evolving mobile market.
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