A flood of rumors have been spread regarding the possibility of Microsoft purchasing RIM in an attempt to keep pace with Google and Apple in the mobile phone industry. Many see such a move as commercially viable due to the nose dive RIM stocks have taken since the market crashed. Others claim the Microsoft is hoarding a rather large pile of cash somewhere in Redmond, WA and that Bill isn’t afraid to part with some of that cash in order to make a grand entrance into the mobile world. There are two reasons why such a take over by Microsoft may not come into fruition. First of all, RIM founder and CEO Jim Balsillie has stated more than once that RIM is not for sale and that any attempt at a hostile take over will be met with fierce resistance. Of course, this may be just a bit of chest thumping, but it appears that Balsillie is adamant that RIM will not be sold. The other reason is that Microsoft doesn’t need RIM to thrive. Where is it written that every large corporation has to be involved in the cell phone industry, or the mobile industry at that? Mobile products are not the cash cow they once were and while it does make sense for Microsoft to integrate strong wireless service with its existing products, there are more lucrative fields for a cash rich company to explore – such as bio technology or space exploration. This should be kept in the back of the rumor book in my opinion.
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