RIM Wants in on Nortel's Wireless Action, But Why?

Now this is something I didn’t expect: Research in Motion (RIMM) wants to make a bid for Nortel’s (NRTLQ.PK) CDMA and LTE businesses but it was told it could only get involved if it agreed not to submit offers for other Nortel assets for a year. (Source: Globe & Mail).

RIM, which makes the popular Blackberry smartphones, said it was prepared to bid about $1.1-billion.

Jim Balsillie, RIM’s co-chief executive officer, who earlier this year unsuccessfully attempt to buy the NHL’s Phoenix Coyotes, said:

RIM remains extremely interested in acquiring Nortel assets through a Canadian ownership solution that would serve the dual purpose of keeping key wireless technologies in Canada and extending RIM’s leadership in the research, development and distribution of leading edge wireless solutions, but RIM has found itself blocked at every turn.

The big question is why RIM wants to get into the wireless equipment market, particularly the slow-dying CDMA business.

Comments

[Dan Leonida:]

The Canukistani Feds seem to be DESPERATE to "kill" the Nortel brand!!! RIM wants to keep the technology in Canada! Everybody else, it seems, doesn't!

WW-HH-YY-??-!!

Why are the Canukistani Feds willing to pay US$300 mln. to Nokia to take the technology out of the country, but are not willing to do same with MatPat who wants to keep the company whole and in Canada??!

WW-HH-YY-??-!!

And now this! The runner-up of Canadian high-tech darling-of-the year, RIM, wants to keep the technology in Canada, pay twice what Nokia offered, yet all they get is ... I don't think I'm allowed to use the word I'm thinking about! Sorry!

WW-HH-YY-??-!! WW-HH-YY-??-!! WW-HH-YY-??-!!

danleonida

Jul 21 03:44 PM

[serge9:]

in french we say that those people (the Governement, the CEO, Nortel directors and the Board) sont Vendu = they have been Bought, they will gain, personal gain, by destroying Nortel, They are Licensed Criminals, they do what they want, imagin that they impose a condition on RIM (not o make another offer on other asset)
Fishy story, and it stink, can not belive that a Minister is Blessing Nokia Deal, no integrity or concious

Jul 21 07:59 PM

[twoeyes:]

I suspect leverage vs. phone networks. The Nortel unit includes lots of patents that would be useful if the phone networks try to play hardball down the road.

Jul 22 12:29 AM

[Ray Winter:]

If RIM bought Nortel, the executives would spend nearly all their time in the courts defending Nortel's patents, far better to let Nokia have them as Nokia offers access to all wireless patents, admittedly at a price, ...but its usually at a fairly low cost.

RIM has a far bigger fight on its hands defending their business model and delivering new products that can compete with Apple and LG. Most of the latest smartphones allow users to easily gain access to their companies web mail servers, so competition must be getting very hot for RIM.

Clearly RIM are recognising they need to broaden their appeal, so maybe getting into the Wimax space of Networks and Products might make more sense for them and they will not need to spend anything like $1.1B to be a major player.

Jul 22 05:15 AM