This morning while sipping coffee and waiting for the cerebral fog to lift something occurred to me.

Apparently, Facebook wants a phone. And Research in Motion…well, let’s be honest, wants to live. Could this be a possible outcome? Well, let’s have a look. Facebook now has roughly $61 billion in market capital thanks to their recent IPO. They’ve recently purchased Instagram for a seemingly insane sum. Now, they’re apparently shopping for new toys such as Face.com.

Research in Motion by comparison has dipped down to $5.88 billion at the time of this writing. Mind you this is pre market open on May 30, 2012. When you take into account the sinking ship impression that has been coming from the Waterloo Ontario firm with the stock at fire sale prices, possible layoffs and the chance of a $1 billion write down in unsold inventory. RIM is ripe for the plucking and Facebook has demonstrated that they have a sweet tooth.

Now, to the salient point. What if Facebook did in fact purchase RIM? What would become of the software security that certain people have come to know any love in their Blackberry devices? I’m not saying that it would tank but, Facebook has not had an overly stellar track record when it comes to handling security and privacy issues.

What are your thoughts?

Folks have been writing off RIM for a while now. These may turn out to be premature autopsies and may yet give way to a last act in this play.

(Image used under CC from frozencapybara)

Comments

  1. The rumour I read this morning suggests that Facebook will buy Nokia to build a so-called ‘FacePhone’ (why on God’s green Earth anyone would want a Facebook smartphone is beyond me, but I digress).

    I do believe RIM is ripe for the picking. But if the company’s assets are to be plucked, I’m guessing Apple would be the better bet. Why? Apple is increasingly targeting the enterprise and snatching RIM’s strong enterprise heritage would help it in that regard.

    Can RIM turn itself around? Yes but it’s highly unlikely. Like Nokia, it’s game over for the BlackBerry as we know it though I suspect BlackBerry will live on.

  2. @Liam While I would agree with you on the heritage front for RIM I think that too may have passed the best before date. Apple could have gobbled RIM up without even blinking before now. Mind you, if I was a betting man, I would wait until after the alleged layoffs and write down to pick RIM up for a penny or two.

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