Microsoft RIM takeover
Microsoft RIM… doesn’t sound too bad, eh? Well, definitely doesn’t sound too bad for Research in Motion (RIM-T) shareholders, whose shares rose today on speculation that the Canadian-maker of the BlackBerry handheld device could be bought by Microsoft Corp (MSFT-Q).
Waterloo-based RIM’s shares rose $2.10, or 2.42 percent, to $88.90 in Toronto. Meanwhile in the U.S., the stock climbed $2.18 (USD), or 2.66 percent, to $84. Microsoft shares also seemed to be advantageous to the rumours, who rose 24 cents, or 0.8 percent, to $28.83.
The takeover chatter also made its way into the currency market, helping send the Canadian dollar up by a third of a cent. The Canadian dollar traded at 94.65 cents from Tuesday’s close of 94.30.
My bet: just a rumour. A very good one though. Currency trading is not at its best right now, so investors are extra quick to react to any speculations (not that they usually aren’t anyway). Logically, the rumour sounds a bit too -umm… illogical? For those of you who have been living on the moon: Microsoft already has a handheld product.
Then again, the rumour can’t be totally invalidated either. And if true, partly-living in Waterloo, I can say the takeover would not please the area residents, Blackberry users, or ambitious Canadian entrepreneurs. There are more than 20 RIM buildings in Waterloo, employing many in the software and hardware industry - including many neighbouring university students from the University of Waterloo and Wilfrid Laurier University.
RIM holds the image of a distinguished and innovative brand, which is partly the reason for its Blackberry users’ loyalty. The buildings in Waterloo provide ambitious young university students with a entrepreneurial passion while passing the buildings everyday. Perhaps that’s the reason RIM CEO, Mike Lazaridis, chose RIM to be based in Waterloo - not California. Research in Motion spells out a Canadian success story. It would be a shame if this really happened. Sorry about the emotion, but once again, my bet: just a rumour.
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