Around the Net
RIM Bringing In The Bankers?
- Bloomberg, Friday, April 20, 2012 11:58 AM
Moving closer to a possible sale of the company -- and a massive shift of the mobile landscape -- Research In Motion is reportedly ready to pick JPMorgan Chase as its financial adviser. “RIM is considering options, such as a licensing deal or a strategic investment,” according to Bloomberg, citing sources. “A final choice hasn’t been made and could come within days.”
Chief Executive Officer Thorsten Heins, who recently took over for co-founders Mike Lazaridis and Jim Balsillie, said he is open to strategy changes in light of customer and market-share losses, which have led to five straight quarters of sales shortfalls for RIM.
Analysts, meanwhile, see the potential arrival of JPMorgan as proof that RIM is in desperate need of a change. “This clearly indicates that opinion in Waterloo is changing much faster than people anticipated,” Anil Doradla, an analyst at William Blair & Co., tells Bloomberg. “It’s a far cry from what they stated six months ago.”
Regarding Heins, Doradla thinks he is addressing RIM’s woes in a much more straightforward and honest fashion. “He’s recognizing the realities and saying, ‘You know what, let’s be realistic’ -- and credit to him,” Doradla said. RIM also reportedly discussed its options with Bank of America.
