RIM splitting manufacturing and Services


Research In Motion (RIM) is looking forward to separating its manufacturing and services business, splitting the company into two, in an effort to cope with its continued difficulties in an extremely competitive smartphone market. As a strategic option, the move would allow RIM to concentrate on its more profitable services business which includes services like BBM and BIS with its ailing smartphone business not pulling it down. The Canadian mobile giant would then also be able to sell the separately listed smartphone business. RIM recently asked financial consultants, JP Morgan and RBC Capital, to help it come up with solutions to its current woes. The Canadian company recently released a multi-platform device management tool called Blackberry Mobile Fusion, offering enterprises the ability to manage a broad spectrum of devices, along with RIM’s legendary security. The tool is another indication of RIM’s current aims of not placing all eggs into a single basket and instead capitalising on its services division. Ever since RIM began struggling in the face of smartphone competition from the likes of the Apple iPhone and Android-based devices, there have been rumours of the company looking to sell out. Last year, private equity firms were in negotiations, and a consortium backed by Microsoft was one of the potential buyers. Nothing materialised out of those talks however, but we could very well see something happen soon, with Microsoft probably still interested, if only in a better deal.


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