Could Huawei Or ZTE Buy RIM After Stock Crash?

The share price of the Canadian phone maker Research in Motion fell to its lowest in nearly five years, after pre-market transactions, at just under $30; this follows some disastrous news yesterday when the Blackberry manufacturer announced that it was not going to rake in as much money as it has done in previous years.

As a result, shares went down by 15 per cent with the company's market capitalisation now down to $15.71 billion; that's a quarter of the price the company would have commanded back in September 2008 and makes it an attractive potential acquisition target for the likes of ZTE or Huawei.

Chinese Telco biggie ZTE is valued at just under $81 billion on the Hong Kong stock exchange with annual revenues of around $10 billion. But this is a fraction of what its alter ego, Huawei, still a private company managed last year: more than $28 billion.

Buying RIM would allow either company to grab a very well known name that has millions of high value customers in tens of thousands of businesses and enterprises worldwide, especially in the more mature markets.

RIM would also bring in a whole portfolio of hardware, software and services which stretches from the smartphones and tablets we all know, to the Blackberry Enterprise Server, a wealth of patents and much more.

Perhaps more importantly though, Blackberry is in the top 25 global brands according to a recent BrandZ report which estimates the brand to be worth just under $25 billion, twice that of more well known rivals like Nokia, Sony, Samsung and O2.

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