The move would help Microsoft consolidate its declining share of the Smart Phone market which is set to be ravaged by both the Apple iPhone and the new Google Android smart phone. It could also alienate manufacturers like Samsung, HTC and others who are using the Windows Mobile OS on their mobile devices.
During the past month RIM's share price on the Canadian stock exchange has been hit hard. Two months ago they were $150, overnight they have fallen to $63.87.
Reuters quoted Canaccord Adams analyst Peter Misek saying that Microsoft could make a $28 billion bid for the firm if the stock prices continue to fall. "I'm fairly certain they have a standing offer to buy them at $50 [a share]," the analyst reportedly said.
He suggests that such an acquisition may be a better strategic fit than the much-ballyhooed Microsoft Yahoo deal. "Microsoft does not have an iPhone-killer strategy. It does not have a Google Android strategy. Buying RIM would give them that."
