RIM Splitting Up? Probably Not Yet

| News

Rumors that Research in Motion was planning on splitting its hardware and services businesses into two distinct companies surfaced over the weekend, but most likely aren’t accurate — at least for now.

RIM for sale? Probably not... yet.Unnamed sources said the BlackBerry smartphone maker was mulling over the idea of dividing into a hardware company that makes handsets, and a second company that manages RIM’s services business including device-to-device messaging. News of the rumored split made the rounds through reports from The Sunday Times and Reuters.

The reports also claimed that both Amazon and Facebook were potential suitors for RIM’s hardware business.

While RIM executives haven’t released an official statement confirming or denying the rumor, more unnamed sources familiar with the company’s plans say that isn’t the case at all calling the news “a silly fantasy,” and “one of the most ridiculous ideas I have heard in a while,” according to The Globe and Mail.

Unnamed former RIM executives added that the company’s current management aren’t seriously considering a split, and that such a move wouldn’t do anything to help.

Company spokesman Nick Manning said RIM is working to improve shareholder value, and added that new devices will hit store shelves in the coming months.

RIM has been battling declining sales thanks to competition from Apple’s iPhone and Google’s Android platform. It’s attempt to move into the tablet space with its Playbook has stumbled, too, thanks to weak sales and consumer’s preference for Apple’s popular iPad.

While the possibility for RIM’s management to decide to sell off parts of the company to keep the overall business afloat is plausible, it seems that — at least for now — it has a few anonymous champions saying that isn’t going to happen.

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2 Comments

geoduck

unnamed sources familiar with the company?s plans say that isn?t the case at all calling the news ?a silly fantasy,? and ?one of the most ridiculous ideas I have heard in a while,?

That clinches it. It’s true LOL

John Dingler, artist

I take no satisfaction in RIM’s possible demise.

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