It’s amazing what a little takeover talk can do for a stock price.
Yesterday news came out that Amazon had considered buying Research In Motion (RIM), the company behind the infamous BlackBerry line of smartphones. Apparently RIM turned down the offer after at least some talk had happened between the two companies. This was later followed by a report from The Wall Street Journal that Microsoft and Nokia had explored the possibility of making a joint bid for the company, but RIM apparently wants to stay independent and has been rebuking these offers.
Despite the face that nothing has moved forward, the mere fact that companies are expressing interest in the troubled company was enough to boost its share price 12 percent at the opening bell on Wall Street this morning, although it has now retreated a bit in late morning trading. This is, of course, not even close to the 77 percent the company has seen its stock fall from earlier this year, but any small gain is probably welcomed at this time.
Shareholders have become increasingly agitated with the troubled company as of late, calling for everything from the ouster of co-CEOs Jim Balsillie and Mike Lazaridis to selling out the company to someone else. Now that they know that the executives have turned down offers, it won’t be too surprising to see even more calls for these actions to take place.
What do you think? Should RIM sell out to someone else?