A new, bigger and stronger company called Research in Nokia would emerge if Research in Motion (RIMM) merged with Nokia (NOK).
With a market value of just $6.07 billion (as of December 30, 2012), Research in Motion will most likely be acquired just for the Blackberry brand.
Brandz is a brand equity database holding data from over 650,000 consumers and professionals across 31 countries that compares over 23,000 brands. According to them, the Blackberry brand is worth $6.06 billion. You can read the entire report about the top 100 most valuable global brands 2012 here.
With a market value of just $14.14 billion (as of December 30th, 2012), Nokia will most likely be acquired just for the Nokia brand.
According to Forbes magazine, the Blackberry brand is worth $6.1 billion and the Nokia brand is worth $15.5 billion. You can read the entire article about the world's most powerful brands here.
Despite long lines at Best Buy (BBY) to get the Apple (AAPL) iPhone 5 and news everywhere about Apple being the only half a trillion company (as of September 30, 2012), Apple is not currently the largest phone maker.
|Research in motion||1.9%|
At third they are impressive if you consider the iPhone was invented only 8 years ago. Google (GOOG), on the other hand, invented the cell phone back in 1973. Next year Google will most likely drop from the top 10 and in a few years few will remember them, just like Sony (SNE) which bought Ericsson's (ERIC) share in Sony Ericsson in 2012.
Note to Kazui Hirai (CEO of Sony)
Sell Sony Mobile Communications including the right to use the Sony brand in a telephone for a decade to Microsoft and watch them lose the billions they are making with Kinect trying to compete against Apple and Google. If they make it (this is unlikely but stranger things have happened), then you will get paid for each Sony phone made after 2022.
Note to Larry Page (CEO of Google)
Sell Motorola Mobility (MSI) including the right to use the Motorola brand in a telephone for a decade to Microsoft and watch them lose the billions they are making with Bing trying to compete against Apple and Samsung. If they make it (this is unlikely but stranger things have happened), then you will get paid for each Motorola phone made after 2022.
This market is too crowded already
We only need a few brands. There has to be a market where LG (003550) is the leader and Samsung only has 3.4% of the market or less. Let's pretend for a minute that the market is shoes.
Both companies are from South Korea and they are competing with each other in some markets. LG sells the phone division to Samsung and promises never to make any phones again and Samsung sells the shoe division to LG and promises never to make any shoes again. I know this looks bad for the consumer because less competition means higher prices but there are plenty of brands like Apple from the United States of America, Research in Motion from Canada or Nokia from Finland keeping Samsung from taking over the world.
If ZTE (0763), TCL (1070)(2618) and Huawei from China somehow agree to a friendly meeting with HTC from Taiwan (I know that I am asking a lot) and each of them invests as little as $1.5 billion then they could buy Research in Motion and sell everything and keep the patents and the Blackberry brand.
Each company gets to use the Blackberry brand and they drop their respective brands, except HTC, which is currently already one of the world's most powerful brands with a value of $4.7 billion. Combined they would control 13.2% of the global market and become the third largest cell phone maker ahead of Apple.
Not everything is lost for the shareholders of Research in Motion. All they need to do is get out of the Blackberry business. The first thing they need to do is buy WhatsApp before Facebook (FB), Twitter, Google, Microsoft (MSFT) or any other company with a brain and a billion does.
Some people will pay and some people will switch to another application. Perhaps your sponsors will be happy to pay for the bill. We know the text ads business model works.
Do not invest more cash in the Blackberry 11. Sell your factories if you have any and license your brand to anybody willing to pay good money for the privilege (hint: It's Microsoft, Sony and all the other companies currently with less than 1% of the global market but combined they still control 38.2%).
Both companies could use all their cash to buy Alcatel Lucent (ALU) or any other company in the communications equipment industry dominated by Cisco (CSCO) and Qualcomm (QCOM). Both are very big companies but not as big as Apple and Samsung.
Merge with Nokia which will also get out of the cell phone business. The communications equipment industry is intense but together they could make it in that industry. Alone they could be destroyed by Apple and Samsung.
Don't get caught in the middle of the Android wars. Google and Microsoft are firing too many bullets at each other. Both of them could hurt Research in Motion and Nokia. Perhaps it's wise to move to a more peaceful battleground.
Both brands will survive for as long as companies from China, Taiwan and other countries are willing to pay for the right to use the global brands Blackberry and Nokia.