Microsoft buys rim Good timing, analysts say

Sina Science and technology news Beijing time of June 22, Science and technology blog Bussiness Insider Today published an article said, in the past three years, rim market capitalisation has shrunk 80%, the current may be Microsoft's acquisition of Rim's great opportunity. RIM's share price was closed at $25.89 a share on Nasdaq this week and is expected to be only 4.7 times times earnings, lower than all telecoms equipment manufacturers in the industry.　　For any potential acquirer, RIM could be bought at a premium of 50%, the lowest in the industry. Some insiders say Microsoft may struggle to resist the deal.　　Now that Microsoft needs to win more market share for Windows Phone 7, RIM needs a better software platform, and Windows Phone 7 is a good choice. The Skype deal shows that Microsoft is at the expense of strategic assets.　　Microsoft and rim have a strong complementarity, the merger will occupy a pivotal position in the enterprise market, especially the e-mail software business. The industry also gave Microsoft three reasons not to buy rim: 1. The takeover of RIM will alienate Microsoft's relationship with Nokia.　　Nokia is now the most important partner for Microsoft in the smartphone market, and if Microsoft buys rim, the relationship between the two will change.　　2. Rim's founder may have objected to the deal, causing Microsoft to get bogged down in the initial takeover of Yahoo. 3. Microsoft is a software company, not a hardware company, and Microsoft should focus on software. (Li Ming)