Is RIM For Sale?

Potential acquisition targets are being chased by Lenovo in order to expand its business beyond PCs. The company is currently looking towards the possible purchase of Research In Motion.

The Chief Financial Officer, Wong Wai Ming, stated that the fast-growing PC maker is exploring options for acquisitions, but commented on RIM in particular.

Speaking with Bloomberg News at the World Economic Forum in Davos, Switzerland, Wong said: "We are looking at all opportunities - RIM and many others."

The Bloomberg report also reveals that Lenovo has been in discussions with RIM and its bankers in relation to the potential acquisition or other possibilities for strategic ventures.

Over the last three years, Lenovo's PC business has been top-notch. However, the company had difficulties in making an impact in the mobile device market beyond China.

Some smaller purchases have been made recently by the company; this includes the acquisition of Stoneware, a cloud software maker in September last year. CCE, an incumbent manufacturer of PC, smartphones and tablets based in Brazil, was also acquired in a $147 million deal. Despite this, Lenovo has not made any major purchases in the North American smartphone and tablet markets.

Research In Motion has also been struggling recently, due to intense competition from the iPhone and touchscreen Android phones, and is currently mounting a comeback. The company's Blackberry hardware has been revamped and the BlackBerry 10 operating system will be released this week. The stock price of RIM has, as a result, increased by over 50 percent in the last year. The disclosure from Lenovo will therefore certainly be of added significance for RIM. (CY) Link