RIM looks to offload NewBay in bid for cash
:::::Research In Motion is trying to find suitors
for a cloud-services provider it bought
back in October, according to a report.
According to Reuters, citing sources, RIM is
trying to find buyers that would take
NewBay off of its hands . NewBay, which
RIM acquired back in October for a
reported $100 million, offers cloud
services to operators and device makers
trying to deliver multimedia to handsets,
PCs, tablets, and televisions. Reuters'
sources didn't say how much RIM might be
trying to fetch in a sale.
RIM's reported NewBay move is just the
latest rumor to fly about its plans for
future. Last week, Jefferies analyst Peter
Misek told investors in a note that he
believes " RIM is attempting to revive
discussions with Samsung" about licensing
BlackBerry 10, its upcoming mobile
operating system, to the handset maker.
Just a couple of days later, IBM was said to
be considering making a move to acquire
RIM's enterprise-services unit , which
includes the network that powers
BlackBerry e-mail, among other software.
The NewBay acquisition was designed to
play an integral role in RIM's plans last
year to boost service revenue, Reuters is
reporting. However, with CEO Thorsten
Heins now in charge, it appears any move
is on the table for RIM.
And why not? RIM is watching its device
sales plummet and its stock price decline
with them. The company last quarter
generated just $2.8 billion in revenue and
lost $518 million. In the last same quarter
last year, it posted revenue of $4.9 billion
and a $695 million profit.
It's clear that until RIM can start turning
around its device sales -- a long shot in its
own right -- the company needs to cut
costs and raise some cash. Sales of
divisions and other assets could help it do
just that.
For its part, RIM is not saying if it might be
thinking about offloading NewBay, telling
CNET in an e-mailed statement today that
"RIM doesn't typically comment on
speculation about potential acquisitions
and divestitures."
RIM was similarly tight-lipped about
possible plans for BlackBerry 10 and its
enterprise-services unit.
for a cloud-services provider it bought
back in October, according to a report.
According to Reuters, citing sources, RIM is
trying to find buyers that would take
NewBay off of its hands . NewBay, which
RIM acquired back in October for a
reported $100 million, offers cloud
services to operators and device makers
trying to deliver multimedia to handsets,
PCs, tablets, and televisions. Reuters'sources didn't say how much RIM might be
trying to fetch in a sale.
RIM's reported NewBay move is just the
latest rumor to fly about its plans for
future. Last week, Jefferies analyst Peter
Misek told investors in a note that he
believes " RIM is attempting to revive
discussions with Samsung" about licensing
BlackBerry 10, its upcoming mobile
operating system, to the handset maker.
Just a couple of days later, IBM was said to
be considering making a move to acquire
RIM's enterprise-services unit , which
includes the network that powers
BlackBerry e-mail, among other software.
The NewBay acquisition was designed to
play an integral role in RIM's plans last
year to boost service revenue, Reuters is
reporting. However, with CEO Thorsten
Heins now in charge, it appears any move
is on the table for RIM.
And why not? RIM is watching its device
sales plummet and its stock price decline
with them. The company last quarter
generated just $2.8 billion in revenue and
lost $518 million. In the last same quarter
last year, it posted revenue of $4.9 billion
and a $695 million profit.
It's clear that until RIM can start turning
around its device sales -- a long shot in its
own right -- the company needs to cut
costs and raise some cash. Sales of
divisions and other assets could help it do
just that.
For its part, RIM is not saying if it might be
thinking about offloading NewBay, telling
CNET in an e-mailed statement today that
"RIM doesn't typically comment on
speculation about potential acquisitions
and divestitures."
RIM was similarly tight-lipped about
possible plans for BlackBerry 10 and its
enterprise-services unit.
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