In a note to investors today before Research in Motion’s annual shareholder’s meeting RBC Capital Markets Managing Director Mike Abramsky, is calling for RIM to break up it network and handset businesses in to separate companies.
RIM’s organization, like its handsets, needs modernization. By acting now, splitting RIM into network and handset businesses may target opportunities and unlock significant shareholder value. RIM’s end-to-end solution was conceived when data devices and networks were nascent — but times have changed…
This really brings up an interesting question for RIM. There are a ton of BlackBerry users that say they will remain BlackBerry users because they don’t want to give up BBM, they continue to need to use BES, and because of the security built into RIM’s proprietary network. Carriers like RIM’s network because it uses less data. Abramsky believes there to be a market of roughly 400 million Android devices, Windows phone devices, and tablets waiting for a cross platform push messaging, social networking, cloud and business data services network connected to almost 600 carriers around the world.
What do you think? Would breaking apart RIM’s network and handset businesses into separate companies be a good thing for share holders?
[Via BGR]
And follow in Palm’s footsteps? How well did that work out for them?
And follow in Palm’s footsteps? How well did that work out for them?
I once would have said yes. But, now, with the flurry of info as of late, I say it would be to their death. The reason being that some companies are trying to get away from the extra charge of the BES and providing devices. There are also the carriers who are trying to get away from the sharing of data profit. On the hardware side, there is much to be desired for many consumers. So, in pieces there is no one killer who will thrive from the split as of yet.