Blackberry Platform is Reportedly Up For Grabs; Could Facebook (FB) and Amazon (AMZN) Step In?

  on Jul 09,2012 Posted in Business News ,Technology
 
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Facebook Inc (FB) and its future e-commerce rival, Amazon are gearing up to talk with Canadian telecom giant, Research in Motion (RIM), to discuss the purchase of its BlackBerry phone manufacturing division in an effort to expand their influence in the ever growing cellular market .

RIM is also considering dividing its interests and the sale of its handset production to either Amazon or Facebook. If that happens, the company is likely to retain its troubled but still popular e-mail processing services. RIM had previously confirmed that it is taking keen measures to develop a strategy for the company’s fortune to run, which could be selling or renting its assets.

Blackberry, the world’s largest mobile email company, which has long been in deep water,  is believed to be seriously considering selling part of their business to a rival as the last attempt to resuscitate the platform which is hitting brick walls, despite changing the management and laying off several thousand employees.

One of BlackBerry’s biggest challenges, apart from financial troubles, is innovation.  With the presence of Apple iPhone, Samsung Galaxy and Google’s Android phones, it is very hard for RIM to penetrate in the market which is loaded with designer phones. This is the reason why Blackberry and Nokia are not being able to compete in this market and the upcoming releases of Apple’s iPhone 5, Samsung Galaxy S3 and Google Nexus 7 will only add injury to BlackBerry plight.

Last month, RIM admittedly said in a press release that it had involved financial consultants  JPMorgan Chase and RBC Capital Markets to assist the company in evaluating various financial strategies and option, one of which they are particularly keen about is sharing the BlackBerry platform with other companies through a licensing agreement.

Facebook has long been rumored to launch its own mobile phone device and the acquisition of the BlackBerry’s manufacturing skills could help it overcome the difficulties pertaining to hardware services. Amazon will also have the similar advantage, primarily in the form of technology which it can use to improve its Kindle eBook reader.  Amazon will also have some advantage in getting into the smartphone market.

 



 

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