RIM All Set to Sell NewBay

by Thea Neuman 190 views0

Thorsten Heins (RIM’s new President and CEO) revealed sometimes back that RIM has hired popular investment banks like JP Morgan and RBC Capital Markets, which would formulate some major strategies in order to help the company to come out from troubled water.

It seems that after much brainstorming, the professionals who were chalking out some turn-around strategies have come up with some premeditated solutions.

If new reports are to be believed then RIM is all set to sell NewBay (a cloud services provider) and few of its trivial assets that were acquired by this Ontario-based company.

RIM Selling NewBay RIM got hold of NewBay way back in the month of October last year. NewBay basically works as a catalyst for providing images, video and tools related to social-networking websites for computers as well as smartphones. The entire acquisition deal was finalized for a whopping $100 million.

However, RIM is yet to confirm these new reports which have surfaced regarding NewBay sale-off.

Everyone knows about RIM’s glorious past when it was a leader in the domain of smartphones.

Unfortunately, RIM failed in sustaining its leading position since it couldn’t exploit the market opportunities on right time and that’s when the troubles began brewing up few years back.

Its arch rivals Apple and Samsung kept on innovating and not only satisfied their end-users but delighted them, while RIM failed in doing the same. Apple grabbed people’s attention with its cutting edge iOS, and Google literally amazed people by rolling out extremely user-friendly and radical Android Operating-system. RIM was left way behind in this race and that’s how BB OS lost to its opponents.

RIM acquired NewBay thinking that it will help the company improve service revenues as RIM planned to allow carriers to take advantage of its services for delivering content, sending messages on all the smart phones.

At the time of acquisition, the number of NewBay subscribers accounted for 80 million. NewBay would accumulate media on the servers possessed by it and then deliver that media to other devices featuring internet-connection which included devices like cell phones, PC, tablets, etc.

Thorsten Heins Positive About RIM Despite All Odds After feeling the heat, Mike Lazaridis and Jim Balsillie (Co-Chief Executives at RIM) put down their papers in early Jan this year, but newly appointed RIM’s CEO and President appears to be a go-getter and headstrong. Heins is trying to think of every single possible way which can infuse a new lease of life in the company.

At one side, Heins is gearing up for upcoming BB 10 release while on the other side he is working on alternative strategic precise plans which can contribute in saving the company.

RIM has been witnessing a plunge in its shares, sometimes due to its own acts and sometimes due to the negative media reports. As the release time of upcoming BB 10 devices is nearing by, media has already started talking about an acquisition plan. In case BB 10 devices fail in living up to users’ expectations, RIM will be left with no other option except acquisition.