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Google should buy RIM

12 pointsby BvSalmost 14 years ago
According to this report http://www.businessweek.com/magazine/the-biggest-ip-war-chests-08042011-gfx.html RIM has the biggest I.P. war chest in mobile (more than Microsoft or even Nokia). With a current market cap of about 12 billion US$ it would be "only" 3 times more expensive than the Nortel patents but would bring much more to the table than just patents (RIM is stil pretty profitable and could help Google significantly in the attempt to gain more corporate clients).

4 comments

nextparadigmsalmost 14 years ago
Yes, that's what I was immediately thinking too when I saw that. RIM is still quite expensive though, and unless they plan on turning RIM around and getting a strong foothold in enterprise with Android within like a year, then $12 billion seems too expensive for patents.<p>This also reminds me what a mistake Google did when they didn't buy Palm. They could've paid <i>only</i> $1.2 billion for their huge mobile patent chest (probably about as big as RIM), their WebOS technology, which I'm sure they could've used, and also 1000 employees, where many of them were engineers. Palm would've been a total bargain for Google.<p>With RIM, Google has 2 strategies:<p>1) Get them now by spending 1/3 of their cash, and immediately switch the company to Android. If they move it fast and do it right, they have the opportunity to make Android bigger in enterprise than iPhone will ever be. With RIM, they also have the opportunity to make a <i>lot</i> of money from hardware - maybe close to what Apple is making. The downside is some Android partners may not be too happy about this, but as long as they remain fair towards them and give them access to Android no later their their own RIM division, I don't think they'll mind it too much. They'll still want to use Android because Android is still the most popular smartphone platform they can use by far, right now. It's not much different than if Microsoft bought a PC manufacturer.<p>What I'd love about it as a consumer, is that there would be a strong manufacturer, Google's no less, that will make great stock Android smartphones.<p>2) They can let RIM collapse, and buy them in 2013 for much less just for their patents, maybe for 2-3 billions or so.<p>Either way they have to take into account that others, like Microsoft might bid for them, too, although I'm not entirely sure Microsoft will buy them right now, after their partnership with Nokia. And at least Android has 50% market share, while WP7 has 1%, so Microsoft's other partners besides Nokia might leave them altogether. And then if Microsoft can't turn WP around with the fast declining RIM, and the even faster declining Nokia, they're gone from the mobile space, and they'll take both RIM and Nokia with them. Google buying RIM at its peak is one thing, Microsoft buying it when WP hasn't even become larger than WebOS, is quite another. Why would the others stick around for an OS that doesn't bring them any significant sales, and when Microsoft will play strong favorites with Nokia and of course RIM, which would be theirs?
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rstalmost 14 years ago
The trick, strategically, would be arranging to do this without having the transaction turn into yet another bidding war --- which they'd be at risk of losing once again to a coalition of their adversaries (as with the Nortel patent auction).<p>Perhaps they could arrange a coalition of their own, involving IBM, or one of the other phone manufacturers as the ones who would take over the actual phone business...
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benfwirtzalmost 14 years ago
Guess it won't happen now, Google just bought Motorolla for (about) the same price they could have bought RIM: <a href="http://techcrunch.com/2011/08/15/breaking-google-buys-motorola-for-12-5-billion/" rel="nofollow">http://techcrunch.com/2011/08/15/breaking-google-buys-motoro...</a>
prestyalmost 14 years ago
Google buying RIM would make the other Phone companies very unsettled