Is Lenovo Acquisition of RIM a No-Go?
While RIM’s current standing and Lenovo CFO Wong Wai Ming’s statement about the company’s acquisitions strategies made some think a merger could be in the works, a response from Lenovo proves that it’s simply speculation.
Since Apple’s (NASDAQ:AAPL) iPhone debuted in 2007, RIM has had to deal with a declining market for its own phones. Recently, the phone-maker has been working hard to have a strong launch for its BlackBerry 10 platform and set of smartphone devices. The BB10 launch is RIM’s current focus, but the company has said it may be looking at licensing its software or selling off its hardware-making unit.
That’s where Lenovo comes in…
In the past several years, Lenovo has come out as a strong player in the PC market. Globally, Lenovo is ranked only after Hewlett-Packard (NYSE:HPQ) in the PC market — unfortunately, the PC market is on the decline due to the growing popularity of smartphones, tablets, and other alternative technologies.
Lenovo hasn’t hedged its bets on the PC market. It has developed its own smartphone and tablet devices, but faces a difficult market that hasn’t embraced the brand as quickly as the PC market had. While two other Chinese brands have reached the top-5 list for smartphone sales, Lenovo was not among them.
So, while RIM has struggled and Lenovo has dealt with a weak smartphone brand and declining PC market, it’s natural for speculation to arise that Lenovo could be considering an acquisition of RIM, especially after Wong’s broad explanation of Lenovo’s mergers and acquisitions strategy, when asked about RIM as a potential target.
A recent response from Lenovo on the subject has made it clear that it is all just speculation, though, and that Wong’s statements may have been misinterpreted. However, the company did not deny that an acquisition of RIM could be possible in the future. So, there is little more information to go on than Lenovo being open to consider beneficial acquisitions and RIM being interested in partnerships to strengthen the company — both natural stances for any company.
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