In 2007 Research in Motion was at the height of its success, praised as Canada’s most profitable company and the clear market leader in mobile technology. But in just five short years, RIM now finds itself at a crossroads. With crumbling investor confidence and stock prices trading at record lows, RIM is now charged with the task of overturning its rapid decline. Many different strategic options are on the table, but which one will RIM embrace?
One option that has sparked much conversation is the possibility of an acquisition. Despite some harsh media coverage, experts acknowledge that RIM still retains value and should not be overlooked as a strategic acquisition target. In the last five years, RIM has worked hard to build its market share, user base and intellectual property assets, particularly in the enterprise space. Even at the most conservative estimates, which exclude cash on hand estimates, RIM’s enterprise value is estimated to be worth $4.2 billion.
As a virtual data room provider used to facilitate large-scale financial transactions, Firmex takes a great interest in deals and trends that affect the M&A community, particularly in Canada. As we’ve followed RIM’s story, we’ve seen a lot of speculation as to how RIM will move forward. In light of all this, we decided to delve a little deeper into the debate and explore which players, if any, would consider RIM an attractive acquisition target.
We’re also interested in hearing your feedback. Do you think one of these players will acquire RIM? Or do you think RIM will head down a different route?