There has been plenty of speculation that Research In Motion is a takeover target, especially as its stock continues to tank. However, Town Hall Investment Research analyst Jamie Towsend doesn’t see anyone scooping up the sinking BlackBerry maker anytime soon and, as a result of those predictions, Townsend thinks investors should continue to sell off RIM stock.
“The greatest likelihood is that the company will remain largely intact and attempt to rebuild its business,” Townsend argued in a note obtained by Forbes. “In our view, none of these outcomes suggest a long term solution for the company or a meaningful positive for the shares.”
He said that RIM could offer Samsung a jump into the enterprise space, something that Samsung has wanted, but that the South Korea-based phone maker is already focused on Windows Phone and Android devices and probably won’t veer too far away from them. “Samsung has its hands full,” he said, also pointing to Samsung’s repeated denial of any interest in buying RIM.
One report recently suggested that IBM is interested in RIM’s enterprise assets, but Towsend said any software-only sale would essentially leave RIM’s hardware business for the picking, which he doesn’t think is too attractive.
Townsend dismissed any chance of Nokia, Microsoft, Amazon, Google or Facebook buying RIM and attributed an overall lack of interest as the reasoning for his conclusion. Townsend also addressed Huawei, HTC and ZTE as possible takeover companies but said that the “Canadian government would be very reluctant to allow its once crown corporate jewel to be absorbed by any of these three companies” and that the U.S. would be worried about ZTE or Huawei disrupting infrastructure businesses. Canada has been watching RIM closely and could, indeed, stand in the way of a possible acquisition.