RIM Shares Bottom: Takeover Time?
Despite today's 5% rally for Research in Motion (NASDAQ:RIMM) shares today, its stock price has fallen back to 2006 levels. Thus the conversation for a buyout by cash rich Microsoft (NASDAQ:MSFT) or Dell (NASDAQ:DELL) becomes plausible.
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(Bloomberg) Research In Motion Ltd. (RIMM) has lost so much value that an acquirer could pay a 50 percent premium and still buy the BlackBerry maker for a lower multiple than any company in the industry.
RIM, once worth $83 billion, fell more than 80 percent from its record three years ago as Apple Inc. (AAPL)’s iPhone and Google Inc. (GOOG)’s Android platform siphoned off smartphone customers. The Waterloo, Ontario-based company, which plunged last week after saying quarterly sales may drop for the first time in nine years, closed yesterday at $25.89 a share, or 4.7 times earnings next year. That’s less than any communications-equipment provider, according to data compiled by Bloomberg.