Monday, May 19, 2008

Microsoft to Possibly Buy Research in Motion after GPhone Rumors Scare them

Research In Motion LTD (RIMM), the maker of the Blackberry, is recently trading up 3% on unconfirmed speculation Microsift (MSFT) is considering the purchase of RIMM on rumor of Google Inc. introducing the GPhone.
The rumors of the Google phone recently published on an India news site, has forced Microsoft into a corner in which they must acquire a means to compete with a possible Google entrance into the mobile marketplace.
Research In Motion (RIMM), with a market cap of $46 billion would be quite a large purchased for Microsoft, who has a market cap of $267 billion. Microsoft currently has nearly $30 billion in cash and short term investments, so a part cash, part stock deal would have to be made.
Analysts believe that if Google does come out with a mobile product, ie. the Gphone, then it would be crucial for Microsoft to follow their lead, or in this case beat them to the punch. A Microsoft/Research in Motion deal would give Microsoft power in the mobile market that even Google may even envy.
More details on this possible buyout can be found at Bloomberg.com - http://www.bloomberg.com/apps/news?pid=20601082&sid=aNaMJmLPfzv0&refer=canada

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