Samsung Purchase of RIM (RIMM) Unlikely as 'Tizen' Awaits
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Will an acquisition of Research In Motion (Nasdaq: RIMM) by mobile OEM giant Samsung actually happen? Probably not, and the following is a viable reason...
Samsung has already expressed interest in creating its own mobile operating system.
According to the Financial Times Monday, the company is planning to merge its Bada operating system into an Intel (Nasdaq: INTC)-backed platform. Dubbed "Tizen," the move comes as an attempt to reduce Samsung's dependence on Google's (Nasdaq: GOOG) Android operating system. While Tizen will start running on Samsung devices later in 2012, one exec said the platform won't become Samsung's go-to operating system for a while.
RIM shares traded up more than 8 percent over Tuesday's session as traders responded to a rumor Samsung could be interested.
Additionally, Samsung's window of opportunity for a go at RIM may have already closed. Just a few weeks ago, Samsung could've picked up RIM for about $4 or $5 billion -- rather cheap for a large mobile device maker. Shares of RIM, however, have since gained 20 percent, bringing that purchase price significantly higher. RIM shares added another 8 percent to gains Tuesday amid rumors of a tie up between the two.
Then there's Jim Balsillie and Mike Lazaridis, the notorious co-CEOs and co-Chairmen who've ridden RIM both higher and lower. Amid cries from investors, the two have refused to split up the roles, or step down into different positions. Samsung will have to deal with those two on any acquisition attempt.
Although the acquisition of RIM might give Samsung immediate exposure in several markets, decent patents, and sharply reduced dependency to the Android platform, there's a reason RIM shareholders have suffered over the past 12 to 18 months... a lack of innovation!
Samsung has already expressed interest in creating its own mobile operating system.
According to the Financial Times Monday, the company is planning to merge its Bada operating system into an Intel (Nasdaq: INTC)-backed platform. Dubbed "Tizen," the move comes as an attempt to reduce Samsung's dependence on Google's (Nasdaq: GOOG) Android operating system. While Tizen will start running on Samsung devices later in 2012, one exec said the platform won't become Samsung's go-to operating system for a while.
RIM shares traded up more than 8 percent over Tuesday's session as traders responded to a rumor Samsung could be interested.
Additionally, Samsung's window of opportunity for a go at RIM may have already closed. Just a few weeks ago, Samsung could've picked up RIM for about $4 or $5 billion -- rather cheap for a large mobile device maker. Shares of RIM, however, have since gained 20 percent, bringing that purchase price significantly higher. RIM shares added another 8 percent to gains Tuesday amid rumors of a tie up between the two.
Then there's Jim Balsillie and Mike Lazaridis, the notorious co-CEOs and co-Chairmen who've ridden RIM both higher and lower. Amid cries from investors, the two have refused to split up the roles, or step down into different positions. Samsung will have to deal with those two on any acquisition attempt.
Although the acquisition of RIM might give Samsung immediate exposure in several markets, decent patents, and sharply reduced dependency to the Android platform, there's a reason RIM shareholders have suffered over the past 12 to 18 months... a lack of innovation!
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