Instead, what happen is that as soon as a market leader emerges, rivals come out like a pack of wolves to circle around any sign of weakness with the sole purpose of taking what you have and sending you out of business. It's merciless and shrewd, yet it's the best system ever developed.
Some companies, such as IBM (IBM)
However, at Research In Motion
It said this while also announcing it had hired JPMorgan
The case for Facebook
Whenever RIM is said to be a target of an acquisition, there is the obligatory mention of Microsoft
On the heels of what has been an absolute debacle of an IPO, Facebook is looking for a way to save some face with Wall Street, now caught trying to assess what exactly is the value of social media. Facebook's response is to build a phone. But the company forgets it knows nothing about hardware. It's another decision destined to fail. In essence, Facebook needs RIM as much as RIM needs Facebook.
Furthermore, the market understands that Facebook's business and sustainability will be heavily predicated not only on its ability to perfect mobile ad revenue but also its ability to monetize its 900 million-person user base. In RIM, not only will Facebook get a better enterprise presence, but it will also acquire assets such as RIM's BB10 software, a growing music service as well as RIM's Mobile Fusion, a product that supports the collaboration of enterprise mobile devices, even that of competing models such as iPhones and Android devices.
In Essence, Facebook immediately becomes a hardware and services company while silencing critics such as myself who assert that the company does not make anything and is merely a fad. Will Facebook see the opportunity it has in RIM? Or insist on throwing good money toward its own R&D project that will likely go nowhere?
The case for Sony
There are a lot of similarities between what RIM has become and Sony, which is far from being buried underground but has long been placed there by Wall Street -- grouped with names such as Nokia and Sprint
For example, although it created the PlayStation, it did not invent the video game. It also gets plenty of credit for the VCR, CD, DVD, and other technologies already invented by someone else. Sony's specialty has always been the remarkable way it can transform an existing idea into a must-have, and in that sense has been much like Apple. It has relinquished its lead to Apple in mobile audio technology, though, after preceding the iPod with the Walkman, and in that sense is more like RIM.
With each passing quarter, Sony product portfolio gets further and further behind. The company can re-acquaint itself with consumers by buying RIM, as well as get something it does not have: An enterprise presence and a possible cloud strategy.
By buying RIM, Sony will be able to merge its mobile gaming devices such as the PlayStation portable with a smartphone while also broadening its Sony Music assets with that of existing BlackBerry music subscribers. This also lets it into the highly competitive automotive audio dashboard world to compete with the likes of Pandora
For RIM, the game is over -- end of story! For Sony and Facebook, buying RIM starts new chapters within their respective narratives. For Sony, it will be preserving a legacy and reminding Wall Street there are such events in business as happy endings. For Facebook, buying RIM will alter immediately what has become on Wall Street "assumed chapters" in a novel that has only just begun.
RIM deserves a considerable amount of credit for its willingness to donate (or in this case) sell its organs for the benefit of humanity in hoping that its mistakes are never repeated. This is Wall Street, though, where we don't learn from our mistakes and a new RIM is popping up every day.
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