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Rumor has RIM Splitting Off Handset Manufacturing Division

Circle of BlackBerry bridgePair

You have to love the rumor mill of late. The latest RIM rumor has unnamed sources telling The Sunday Times (Reuters) that RIM is considering splitting their business in two. That would separate the handset manufacturing division from the rest of the company. There really is nothing much substantiating this rumor but I felt we had to mention it since it has taken over the web this weekend. Potential named buyers are Amazon and Facebook who may also be interested in RIM’s wireless network. Another possibility is opening the company to selling a large stake to a bigger company such as Microsoft.

RIM has already said that they have hired JP Morgan and RBC Capital to investigate strategic options so this is probably just one of the many options on the table. RIM did provide a comment stating exactly that:

RIM has hired advisers to help the company examine ways to leverage the BlackBerry platform through partnerships, licensing opportunities, and strategic business model alternatives. We believe the best way to drive value for our stakeholders is to execute on our plan to turn the company around. This remains true.

Either way we should find out some updates this week during RIM’s earnings call on June 28th.

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  1. I believe it would a critical mistake for RIMM to separate their business right now. They are on the cusp of reinventing their brand and breathing new life into their company. The best course of action is to (1.) Stay Boldly on their current course. (2.) Get all the critical apps and the functions working properly. (3.) Market, market, market BB10 and build excitement for it (hold rallies, maybe hire some BlackBerry cheerleaders, or something). (4.) Make sure BB10 arrives on time, without delays and with no features missing. (5.) Offer great deals to consumers upgrading to the new BB10.

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