"Will Microsoft buy RIM? That is a possibility and a fast track for Microsoft to gain a foothold in the mobile hardware business," says Harry Wang, director of mobile research at Parks Associates. "RIM's market capitalization is only $25 billion and Microsoft has $48 billion in cash. If RIM's value drops to $15 billion, it will become an attractive target for Microsoft. Maybe Steve Ballmer was planting that seed during his keynote appearance at Blackberry World." It all adds up to an unconvincing future for the company and its platforms, and RIM's recent lowering of its financial expectations and plummeting market share doesn't help. If RIM continues to decline, the company may be ripe for a takeover, and Microsoft will certainly be examining every opportunity to expand further into the mobile space.

"I'd say RIM is on a shaky transition course," says Wang. "Its future will be decided in the next 12 months, maybe even shorter. There's a 50 percent probability that, in about two years, Microsoft will make a big and bold more to acquire large hardware vendors. RIM will be the best target because it has a user base that Microsoft is looking for: enterprise customers. And they are in the key, fast-growing area that Microsoft isn't very successful at yet, the mobile world. The need for Microsoft is so urgent in mobile, yet RIM is a perfect entry."

From the article, “Will Microsoft Buy RIM?” by Peter Pachal

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