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Is RIM at the Mercy of King Solomon?

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Another week, another rumor about Research In Motion's (RIMM) future.

The latest of which, according to Reuters, is that RIM is considering splitting its business in two. The company's intent is to separate the struggling handset manufacturing division from the messaging network and possibly sell off the hardware business.

The Sunday Times, citing unnamed sources, reported that Facebook (FB) and Amazon (AMZN) could be “potential buyers.” Another option mentioned by the British newspaper, is that the company may stay intact but could sell off a big stake to a larger tech company like Microsoft (MSFT).

RIM’s issues have been widely reported, especially the struggles to regain market share for it’s once popular BlackBerry devices. Despite the recent efforts, it’s not having much success in an industry ruled by Apple (AAPL) and Android (GOOG), which is why the company decided last month to bring in JP Morgan & Co. (JPM) and RBC Capital (RY) to advise on business strategy.

RIM declined to comment on specifics of the report but reiterated that it's examining a wide range of options. The company also released a statement saying that it continued to believe the best way to drive shareholder value was to execute its current plan to turn the company around.

That plan, mind you, has failed for the last half decade.

(See also: RIM's Incompetence Knows No Bounds and BlackBerry Deemed 'Coolest Brand' in Shocking Survey)
POSITION:  No positions in stocks mentioned.