RIM Might Rip into Two, Facebook is Waiting for a Bite


RIM Might Rip into Two, Facebook is Waiting for a Bite

Bangalore: Research in Motion is planning to separate its handset manufacturing division and messaging network division following the suggestion from JP Morgan and RBC Capital, who were hired by the Blackberry Makers in June. According to a report by CNET, the company remains to be only a mere shadow of itself after the rise of Apple’s iPhone and Android.

Amazon and Facebook are sited as the potential buyers and the messaging network could drop into the carts of the market rivals Apple or Google, reports Sunday Times. “Fourth-quarter reports show a company loss of $125 million and a 25 percent drop in revenue, and the company announced last month that it would post an operating loss for the first quarter as well. RIM recently hired J.P. Morgan and RBC Capital to advise it on its business and financial performance. The company also referred to looking at "strategic business-model alternatives," often corporate-speak for the exploration of a potential sale,” says Steve Musil from CNET.

This seems to be the big climax of what had started earlier when RIM started slowly laying off its employees in order to save $1 Billion by the end of the fiscal year. RIM’s London based sales head and Legal advisor quit in quick successions of a week in May.

The company has provided several breakthroughs in the mobile technology by innovating emails and encrypted messaging over secured networks but the changing Smartphone market seems to have taken the charms off it.

“RIM has hired advisers to help the company examine ways to leverage the BlackBerry platform through partnerships, licensing opportunities, and strategic business model alternatives. As CEO Thorsten Heins said on the company's fourth-quarter earnings call, 'We believe the best way to drive value for our stakeholders is to execute on our plan to turn the company around.’ This remains true." A representative from RIM commented on the situation of the company.