Should We Believe the RIM / Samsung Rumor and Does it Make Any Sense?

By Chris Umiastowski on 16 Mar 2012 03:46 pm EDT

RIM is trading 5% higher this morning. A blog post at Barons points to one possible reason for the bump.

Apparently, Wall Street is talking about a potential investment by Samsung in RIM. There do not appear to be any legitimate reports on this, nor do their appear to be any sources willing to go on the record.

Remember that Samsung has, in the past, said that it is not interested in buying RIM, nor is it interested in licensing their operating system (BlackBerry 10).

Most of the rumours we hear about RIM have turned out to be untrue over the last decade, but who knows. Maybe this one has some truth to it. For the purposes of intelligent discussion, let's pretend Samsung is interested in investing a supposed $1.5 billion in RIM and using BlackBerry 10 for some of its upcoming phones.

Why would such a move make sense for Samsung? Well, the reliance on Google's Android is not a good diversification strategy. Maybe it wouldn't matter if Google had not announced its acquisition of Motorola Mobility, but with that transaction happening it calls into question the long term intentions of Google.

Consider this - if Microsoft started making its own Windows Phone hardware, what would Nokia think? I bet they'd be pretty pissed off. I bet the stock would tank. It would increase risk for Nokia.

Same for Samsung. Google now makes hardware. End of story. It adds risk. And Samsung has been steadily gaining market share due to the strong market adoption of Android. Why not diversify and adopt another operating system?

If Samsung wanted to diversity, it obviously has no chance of seleting iOS. Assuming they abandon Bada (their homegrown OS), it's most likely a choice between Windows Phone or BlackBerry 10. Whichever they choose would significantly boost the credibility and perceived strength of that OS.

With Microsoft, Nokia is already a major hardware partner. It's possible that Nokia's deal with Microsoft excludes Samsung from certain agreements they'd otherwise like to strike with Microsoft.

But with RIM, Samsung may have more leverage to gain access as an exclusive licensee, if that's what it wanted. They'd never get that with Microsoft.

In addition, Samsung would probably have an easier time taking a minority (but meaningful) position in RIM versus Microsoft. While a minority investment doesn't give you control, it does give you leverage. Imagine if RIM was to do something that pissed off Samsung enough to cause it to sell its stake? How would Wall Street react to this? Not well.

And from RIM's perspective, its stock has been hammered. Absolutely hammered. If Samsung were to make an equity investment in RIM, the entire platform would gain more credibility for long term sustainability. Developers would likely gain interest too. This would help the stock price significantly, especially given the massive short squeeze it could create (shorting of RIM stock is at an all time high).

Anyway, we have absolutely no idea if this rumor is true or not. But I do think that it makes some sense. It's potentially good for RIM, good for Samsung, and great for shareholders who have witnessed RIM stock trading below tangible book value lately.

Maybe we'll get some clues as to what's in store for RIM on the Q4 conference call, scheduled for March 29th. Stay tuned!

Source: Barons

Reader comments

Should We Believe the RIM / Samsung Rumor and Does it Make Any Sense?


Samsung wants strong MDM.. RIM has that.. makes perfect sense.. wont be surprised to see RIM's mobile fusion to be main management server

Hmmm.. makes sense in a way.... Apple getting into the TV business, Google already in it (kinda).. partnering with Samsung, getting QNX on their TVs might be a GREAT idea to create a complete multimedia experience, Mobile, Car, Office, Home!!

I say... GO FOR IT!!!

Bold 9900 & PlayBook 64GB Wifi

Will the crap get squeezed out of the short sellers very soon. If Rim buys back 10% of its stock, and the 12% shorts need to buy back stock before the share price sky rockets north, there is no way but up for this baby.

No debt
Below book value
Awesome Playbook sales
Developers lining up to get their apps in
4000 RIM stores coming to Asia within the next couple of years. ( That is 5 new stores opening every single day ): For the next 3 years.
RIM has a great following, a great brand

Top in security
BBM... Say no more, say no more.....
Compressed data.....uses less bandwidth
Great phone plans
75+million BBM users, and climbing. They are offering FREE BBM to all BB users that do not subscribe to it, and the interest in continuing after the free trial is expected to be massively explosive.

Well...not really

The article really assumed that Samsung wants diversification in os...

This is not really what we're seeing...if anything, the trend we are seeing is that handset makers are focusing on limited platforms, leading to a convergence not diversification.

The reason is really simple, another platform would add substantial extra costs in many areas.

Samsung has also been doing quite well with its multiple physical size strategy with the android, the Galaxy Note is doing extremely well and we know there's another size available sometime this year.....This is probably going to be their main strategy.

Moreover, Samsung does value its East-Asian market as we have seen that most of its products are launched in East Asia first, and BB is definitely not a popular platform in East Asia. Even if Samsung launches an aggressive advertising campaign, the initial customers are still going to find BBM useless when they can use it to text almost noone they know, it's going to be extremely difficult, costly, and also mean putting some of the resources away from its currently successful strategy.

It's certainly win for RIM but not really for Samsung. I do doubt Samsung would do it....

I live in East Asia, currently stationed in HK and travel throughout the region every season, how would you suggest that I could be more informed.

except Samsung's new line of products are phablet in different it only makes sense to have the same os for both tablets and phones...and they are doing quite well at's extremely unlikely that Samsung would enter a deal that has completely nothing to do with its current successful development strategy and with no obvious benefit to their product line.

Os license would unlikely include the right to use RIM's patented it would be extremely unwise for Samsung and thus questionable...

Apparently when RIM has released quarterly numbers in the past, they did so with a warning. They didn't this time.

Wouldn't mind seeing it happen, although I don't think I'd buy a samsung running BlackBerry unless RIM helped them make a keyboard.

I think it would be pretty amazing to be standing there, looking out of a window which is ACTUALLY running QNX. It makes the TAT concepts THAT MUCH MORE possible!

Samsung makes some well built handsets. Bada probably won't gain traction. Hmmm... Although it seems odd to think of a BB OS on a different manufacturers handset, I'm trying to think of something wrong with the idea... and I can't...
Just as long as the handset is as well built as RIM would do it...

so long as RIM makes sure that Samsung doesn't put a twist to the products to make push updates a problem.

imagine RIM employing two of the strongest competitive advantages that their competition use: Google by having other manufacturers and leverage their hardware skills, and Apple by having uniform updates throughout their devices (no fragmentation).

I've never used a Samsung smartphone for any length of time, but most people seem to like them. Their feature phones on the other hand in my opinion, are junk.

Boldly sent from my 9930

As much as I can't stand Samsung after the TV capacitor cover-up and denial... they finally settled in the USA and trying now to get justice for affected Canadians (contact Steve Osborne at Merchant Law. Com at 289-398-7777 if your TV has the power on clicking issue)....

Anyways, if Samsung has learned from this mistake and will stand behind its products in the future, that would bring some credibility and much needed hardware numbers to RIM because their OS will be on many more handsets. And I am sure the margins on the actual hardware are not a huge profit maker but perhaps having control and licensing of an OS and app developers swarming to BB10 is positive for the BlackBerry ecosystem.

However, I thought that Samsung is heavily in bed with Apple and makes their chips and displays, so I wonder if this rumour is true, what intentions Samsung has. Are they going to steal ideas from RIM or try to get BB handsets component contracts? Are they going to be leaking info to Apple, their bigger interest? Just thinking conspiracy theories...

I wouldn't want to see ideas or secrets being leaked to any company. I wouldn't want to see apple ruining it either.

Assuming that Samsung is a willing participant, I see this as a highly synergistic partnership. RIM could continue to develop the underlying OS and devices with a physical keyboard while Samsung would be responsible for touch-based slabs. In turn, Samsung would achieve greater economies of scale by using existing hardware designs to run the BB10 OS. Win-Win!

uh...isn't that just RIM wins and Samsung loses...Samsung achieves economy of scale for its second product line which it never needed, adding substantial costs to their current would Samsung win?

It likely will be untrue, false, hogwash/bull shit, a lie, a massive stock market troll to wall street.

But if this is true, then who knows, I'll be happy, but I'll STILL buy RIM's devices.

If samsung invested just one penny in RIM I would never buy another RIM product again.

samsung are the worst company on the planet! They couldnt even repair a faulty vibration unit on a phone in warranty without a punchup!!!!!


Don't worry, this is a RUMOR. It's likely to be another lie. Wait for Research in Motion to announce anything. If they call it a hoax, we'll be the first to know.

You sound JUST Like Apple shareholders did when Apple, out of money and market share, sold a bunch of preferred shares to the evil prince from Redmond. The shrieking of Appletons could be heard all the way up here!(Canada). It was entertaining then but ultimately worked out very well for Apple. RIM is in similar, but not as dire, a predicament as Apple was then. Right now the battle is for mind share. The vote of confidence by such a big player would put to rest the doubts in many AMERICAN analyst,bloggers, devs re: the future viability of the platform once and for all. It would change the discussion entirely.

Sent from my BlackBerry Playbook

I don't know about this, though. Mr. Heins seemed pretty determined to have RIM succeed on their own. If this is true, could something have happened that made him change his mind?

I would more or less prefer to see RIM license the QNX microkernel than BlackBerry 10. I always felt that RIM should follow the "Apple" model and do it alone. I, personally, wouldn't purchase anything besides a BlackBerry handset running BlackBerry software. Samsung does make nice phones, however.

I do think RIM should explore all their options. Hopefully, this gain is more about not issuing any warnings ahead of their Q4 reporting.

Would make sense to Samsung in order to add some diversification to thiers products. Also makes sense since theybare in appliance sector, I can see qnx being implemented into their appliances and other electronics.

This will be good thing, It's easy to build good hardware and OS but the ecosystem what matters. Do you think Apple hardware is better then samsung and new BBs. I doubut it but it's all about echosystem, apps and marketing.
With this move, millions of samsung phone will run QNX, RIM will get some cut, the number of apps in the appworld will skyroket, # of BBM users will it's win win situation for both.
Apple introduced imessage, MS bought that textmsg company, Samsung has nothing..

RIM has cash, it has no debt and is making money. Why on earth would it want a cash injection from Samsung? If management believes stock is undervalued, they shouldn't be selling it unless they are desperate for cash. And no, it's not good for long-term shareholders of RIM! If you believe RIM is undervalued and will rebound, it's good for short-term shareholders but dilutes long-term ones. To RIM's management: Unless you believe you are going to be running out of cash soon, don't take any injections.

Well, RIM is far from being broke and with an EPS of around $4.20, over 500 million share outstanding and no debt to speak of, it won't happen any time soon either. So if RIM did this it's not because they need the $1.5 Billion. Now RIM has bought up some amazing technologies lately: QNX, Paratek ....... and I'm sure they picked up some wicked patents in the process. It would undoubtedly be in Samsung's interests to gain access to some of that technology and I'm thinking RIM wouldn't mind tapping into Samsung's manufacturing capabilities; together they would probably make a very formidable opponent, even if they sold as separate brands. No, if this happens, it's definitely not about the $1.5 Billion, there's a little more strategy involved then money.

The one thing I don't want to see, is the QNX OS becoming as fractured as the Android OS currently is and, as mentioned in the article, Google looks to be taking steps to rectify that situation.
I guess we will have to see how RIM and Samsung react to this juicy tidbit. If it is true, I'd love to read the details of that agreement.

Personally, I don't think this "rumour" would be in either company's benefit.

Samsung has been working on their own OS - Bada for a couple years now, and it's supposedly somewhat similar to Android. Samsung doesn't have their OS as "open source".

Much of Androids success is because it's "open source" - but that leaves more room for malware.

RIM - their problem is MARKETING.


American investors would have preferred an American CEO, because they would be more likely to blow up Marketing.

RIM should have bought WebOS (for patents) before they decided to do the "open source experiment".
(HP is hoping WebOS will be resurected).

WebOS "looked" sort of similar - the latest Palms. Acquiring the OS would remove a potential competition threat for RIM.

You can never have enough patents, especially when Apple loves playing patent war, and Google bought Motorola for patent protection.

Samsung investment causes problems from a "leaks" perspective (mentioned by a poster above...). Component supply is RIMs best bet IF doing anything with Samsung.

Last I recall, Samsung only stated they were not interested in purchasing RIM or any portions of RIM. However they were notoriously silent by not addressing any issue of licensing BBOS/BB10 to build devices for RIM.

Some bloggers/online-news sites interpreted it that way in their headlines, and as a result it was accepted inuendo... but nowhere in reading their actual quotes do I recall any statement that they were not interested in licensing building products for RIM.

good for RIM i think. good for samsung. perhaps they can form an even stronger relationship and get additional patent defense. i think Samsung would pay for that.

IMO they should licence BB10 to only full touch-screen Samsung phones.

On the full qwerty (Bold style) and slider(Torch) phones BB10 should be exclusively BlackBerry.

rim should completely remove themselves from hardware market. they failed at it. its 2012 and no front facing camera. however keep the bold and storm 3 line. scrap everything else . let samsumg make the cheap phones. good luck rim

I disagree. RIM hasn't failed.. They're just not impressing enough.

If the current PBOS2 was on my Scorch (torch/storm3) it would make the phone even more impressive than it already is. Yes, OS7 had some bugs, hence 7.1.

Company's have to start updating with updates more to existing customers.
Always getting a new phone is expensive, AND since RIM has A Lot of previous generation phones in new markets, updates would be way more beneficial.

I had a short stint with a SGS2 and thought it would be the ultimate device if it ran BBOS....
just sayin.....

I think people should wait for the first BB10 device to hit before they decide to start selling licensing rights to Samsung. I don't see any other manufacturer running the BB10 OS unless RIM feels it is about to go bust and has no choice. No company wants to kill their own business and shoot themselves by allowing another hardware manufacturer to start selling devices with their new OS. Maybe seeing what the new devices look like would make RIM rethink that position (I guess depending on buzz and consumer reaction(s)), but it's a little too soon to be talking about this. It isn't Samsung's choice if they run BB10 or not, and while they are in bed with Android, they cannot. Personally, if I was RIM, I would wait for the first quarter's results from the new line and then go back and visit whoring themselves out to various manufacturers.

One issue with waiting for results is that BB10 could be DOA after the 1st quarter. Getting more devices out there with the new OS and thus more app support might be more beneficial earlier rather than later when it's perceived as a flop. (not that I hope or think it'll be a flop).

As for letting other companies run their OS, tell that to Microsoft. You have no idea what kind of agreement Samsung has for the use of the Android OS, or what their contractual obligations are. If making well over 2 Billion a year means RIM is in financial difficulty, then I want to be broke too. At this point, it's all rumour and innuendo, whose to say that such an agreement wouldn't heavily favour RIM rather then Samsung, so speculating at this point is just an exercise in futility.

I'm thinking it could be apple who buys a stake. Seems far fetched but hey so does rim at 13 dollars.

Clue number 1. Tim Cook said at the recent shareholders meeting that they would be looking to do muti billion dollar deals?
This is out of character for apple considering they have never done it before.

Clue #2 The nortel patent purchase together with rim??
Which never gained any indepth insight from the media in terms of how that relationship came to be.
Considering how large the deal was it seemed too hush hush.
I don't share my bank account with my wife but hey that's just me.

Clue #3 There doesn't seem to be any bad blood between the two in terms of litigation.
Apple chasing google Samsung etc. not rim

Apple needs to feed the huge growth story for shareholders this is not easy to do.

If rimm has the next big thing apple could give them the marketing they so desperately need just by endorsement.

It would be huge for rim. Apple would gain financially at first and possibly technically if they could eventually share their wares.

The synergy it would create to both companies and consumers who are loyal to their beloved brand would be enormous.

Being both NA powerhouses it could have a nationalization effect paving the way for a single currency (the canerica)
OK that's crazy

Wall street would eat it up like fruits in a basket.

Wow another excellent idea

lol, you talk about BB 10 like it's a sure thing! The worst thing that could happen is if BB 10 gained little traction. Having Samsung jumping in could only validate the strengths of the platform. If BB 10 fails to open up the market, RIM is in deep trouble. Right now, RIM should pursue any opportunities to make sure BB 10 is a massive hit, including licenses to big players like Samsung. It is all about ecosystem for the phones. If Samsung does indeed jump into the BB10 ecosystem, I'm sure RIM and them can figure out a way to divide the hardware sales in a logical manner.

I don't think you understand. Samsung is the largest Android phone maker. Most of their loyal fan base are Android users. If they made a BB 10 phone, people that would buy it would be their fans that switch over from Android, not BlackBerry owners. This could not possibly be a bad thing for RIM. RIM needs any good news they can get at this point.

What you are saying makes a lot of sense and I'm not inclined to disagree with you. There are many possible scenarios for what is going on here, including the scenario where there is nothing going on and all of this is just so much idle chatter on a friday afternoon. I, however, think there is another good possibility that not many seem to be willing to entertain. With Google's recent acquisition of Motorola Mobile assets and the increasing difficulties developers and Google are having dealing with the fractured development environment that is the Android OS, Google might be considering consolidating their OS onto a single hardware platform (ie. Motorola) and excluding licensing further OS updates to the other platforms, thereby eliminating a lot of the greif and headaches that they currently are forced to deal with.

Samsung, knowing this and having set aside their Bada OS development might be looking around considering their options. Now Samsung could buy up an appropriate OS like RIM did, but RIM has already beat them to the punch and plucked the cream of the crop in QNX. Samsung is also probably considering the trials that RIM has gone through and realize that buying an OS doesn't make it ready for production use, nor does it insure that the end product will be able to compete with Android, Apple, or MS; let alone the time it would take just to find out it's a flop. And there sits RIM, chugging along, quietly acquiring some very pertinent technologies and positioning themselves to deliver some kick-ass systems for the foreseeable future. Everyone seems to assume that it is RIM's beacon that is being pulled from the fire with this investment by Samsung, but I think that Samsung's future in the mobile phone and tablet market might be a little more tenuous then most are willing to admit. I'm not saying there aren't substantial gains to be realized by both parties, I'm just saying that RIM's position might not be as weak as many of the pundits would have us believe.

There is no merit in a joint partnership for Rim at this point. RIM is now at the point of controlling their whole ecosystem. The first BB 10 phones are ready to hit the market minus the new 4G chipset. Samsung is a year too late for this kind of proposition. I think the reason the Samsung Rim joint venture keeps arising is because RIM needs Samsung for their phones. Namely the screens that Samsung developes. RIm needs to keep control of all the aspects of their phones and tablets in their own hands.

If we hear samsung, it is unlikely to be it but someone else. Samsung name is probably just whispered here to bluff on a negotiation.

My bet would rather be on Amazon.

How long can Amazon rely upon Google android (can they get the ICS licence?) while they compete each others. Amazon may have tablets (very close to the bb hardware platform...) and content, but they have no phones contrary to google, microsoft or apple. But not sure they are that much interested in bb os 10, although an android player can help and they didn't focus on exposing a stock android distribution.

If Samsung buy RIM, I want Samsung to fire ALL, not just selected few, top officials from RIM. Apple's CEO Mr. Jobs got fired from Apple Inc after a huge decline in Apple market share and he came back to revive it.


First off this is probably a rumor, and Samsung makes ok/bad phones!
2: I think RIM should first release BB10 first before thinking of going with samsung because from what I hear, BB10 looks pretty cool plus their new BB10 phones too!

This is what I believe will happen. Blackberry will try to go it alone in 2012 with their first phone. Which I plan to buy as long as it has high resolution display (320 ppi) and has a smooth UI. If they fail, they will abandon hardware production and work with Samsung on BB10 powered devices. They will offer software solutions after that.

This gives Blackberry brand the survival it needs by matching it with a unstoppable hardware conglomerate Samsung. We can all agree that Samsung is exception at building hardware, i.e. Apple devices use Samsung built products due to quality concerns.

What Samsung gets out of this is? A strong foothold into enterprise. Blackberry regardless of the bashing on it's glory. Is still a valuable global brand placing 56 in 2011.

Let's do a test, if this name appeals to you say agree. Samsung Galaxy powered by Blackberry.

For the first time ever, I am carrying an iPhone issued from work. I had to buy a personal 9900. Blackberry is losing the Enterprise and one reason is nobody wants to license BES anymore. They should seriously discuss giving BES away for free. If they insists on charging, they should at least up the ante to something like "Good" technology and go multi-platform.

BTW I don't think there is any truth behind this rumor. The author gives us the reason in the article. "This would help the stock price significantly, especially given the massive short squeeze it could create (shorting of RIM stock is at an all time high)."
Someone made some money of this move already.

Today was triple witch for futures and options so someone definitely cleaned up. If they purchased some out of the money calls on RIM yesterday that had 1 day to expire. They picked them up for probably a few cents and expired in the money. Maybe 20x their investment. Not bad for one day. Probably some insiders considering it coincided with the earnings anoncement schedule rim made last night which killed the shorts believing rim would guide down early. i like to hear what that idiot from jefries has to say today.

You know that makes a lot of sense, I feel like there are a lot of manipulators in the system who are so-called "experts" but actually use these tactics to spin the market for their financial gains. How much of it is psychology and how much of it is real sound economics? The last few years have shown us already how corrupt the financial system is, especially on Wall Street, the bank and housing meltdown, billion dollar bailouts and corporate greed. No doubt any rumours on RIM will shake up the market because RIM itself seems to be hush on everything and isn't providing much concrete public media direction as to what is happening. It seems to be in a "holding pattern" and BB10 couldn't come soon enough.

The Playbook is an awesome little tablet that is still competing with some newer generation tablets (like the new iPad) and at a fraction of the price, but there is no real media attention to it. Even Canadian TV media had a few minute coverage on the release of OS 2.0 but it was mainly pessimistic on RIM.

Now we see manipulation and rumours helping to amplify the gains in the derivatives and future markets (hence your 20x analogy in a day) and of course, how much of these so-called "experts" benefiting from this? Average stock-holders aren't getting these amplified gains but neither the losses, we are in it for the long-term and want to see things double up or triple over 1-2 years. This will beat Apple, unless you expect Apple stock to go to $1000 over the next couple years. I am more confident a $13 RIM stock will go to $30 over the next few years if things are played right. RIM P/E is at 2.6, it is undervalued and beaten down by some recent losses but they are in no way out of the game.

You look at APPLE stock and the media, and every day you hear something about Apple, iPad, it's never-ending hype. Even the Blackberry News app on my phone... every post from TechCrunch and Wired is iPad this and iPad that... Even CNN tech page is all about Apple, like they have taken over the world. This hype-wheel has pushed Apple sky-high. I don't doubt that people are buying their wares and that there is VALUE in Apple, but come on... a BIG chunk of this is Apple marketing and hype. I commend Apple for taking a cult following and converting it to the masses. Even with their over-priced and closed system of inter-operable devices and ecosystem, people seem to be more interested in simplification, good visuals and design and less options, even if they have to pay more. RIM can learn from this with BB10, but without compromising on what has been important to Blackberry users up until now.

Now with the new iPad launch, media coverage is being milked even more with tons of prime-time news coverage of iSheep lining up at stores for their new iPad, people crying and saying the ipad has "changed their life". There are people starving around the world, but iPad seems to be more important. Can RIM create devices that stir up this kind of emotional attachment?

Maybe we need this rumour to be true, and have a Samsung or another big player show confidence in RIM and create media hype and have people turning their eyes to alternatives to Apple, Android and Windows 8. There is room for everyone as the entire cellphone and tablet market grows. However, it seems like what the key will be in the future is the "ecosystem" of content like Amazon and Apple (and now Google Play) is trying to do, where there is residual money to be made from percentages of sales for app/media delivery.

Samsung may be looking at QNX to incorporate into their Smart TV's and perhaps at a Blackberry ecosystem to allow purchases of content (competition to Apple TV). I wouldn't be surprised. Anyways, some more speculation and rumours to fuel the fire. I have RIM stock so the higher it goes the better.

This is what happened to rim probably by the same group. Lets hope that Prems case has a ripple effect and leads to some hard time for big money players who feel their "in the know" and above everyone else.

National Post ·

A U.S. judge has refused to dismiss a US$6-billion lawsuit launched in 2006 by Toronto’s Fairfax Financial Holdings Ltd. against S.A.C. Capital Management and 22 defendants.

Fairfax is suing S.A.C. and others for financial damages that resulted from the alleged creation of a short-selling disinformation conspiracy designed to drive down Fairfax stock.

S.A.C. and a group of lawyers claimed there was no conspiracy and no wrongdoing, and that their trading was legal.

But Judge Deanna Wilson did not agree.

“I hope that this didn’t happen, because it’s a scheme of tremendous proportions,” said Judge Wilson at the hearings two weeks ago. She rejected motions for dismissal and ordered the matter to proceed to trial under RICO — U.S. organized-crime law –and other statutes.

Fairfax alleges S.A.C. and various affiliates, with US$40-billion in assets under management, attacked the company after it was listed in 2002 on the New York Stock Exchange. In the first few weeks, Fairfax stock was driven down by 15%, or US$14 per share.

By spring 2003, it had rebounded from US$50 to US$96, but then allegedly was attacked again in summer, 2006. It now trades around $230 and has a market capitalization of US$4-billion. The insurance conglomerate is Canada’s 49th-largest corporation by revenues.

The attacks caused financial damage to shareholders over the years and to the company’s reputation, the company says.

“It was a massive and fraudulent disinformation campaign,” reads Fairfax’s statement of claim, which alleges “dirty tricks,” fronts, aliases and bear attacks were used to try to ruin the company’s reputation and price.

One defendant is analyst Spyro Contogouris. The lawsuit alleges he and others were hired to spread disinformaton to journalists, online chat rooms, regulators, auditors and rating agencies, and even harassed Prem Watsa, Fairfax chief executive and chairman.

“The amended complaint alleges a shocking scheme against a prominent Canadian company and its American subsidiary,” said Fairfax lawyer Marc Kasowitz in a telephone interview yesterday. “The decision, denying the motions to dismiss, is very important because it confirms that the legal challenges to the amended complaint are without merit and that this case can now proceed aggressively to discovery and trial.”

S.A.C. was accused of another “bear raid” short-selling conspiracy by Canada’s Biovail Corp., which has also sued the hedge fund and others for US$6-billion. That matter is on hold in a New Jersey court, Mr. Kasowitz said.

Short selling is a legitimate strategy but, if proven, a whispering campaign against Fairfax spreading false information would be illegal. – Read Diane Francis’s blog at

This would be a win-win. Those who don't like Samsung would not have to buy Samsung phones. RIM won't stop making their own hardware and phones. Developers would have a much higher interest in RIM with Samsung adopting BB10. It's just all around a win-win. No question.

i hope i'll be able to find my pb in 2013 to look at this bb10 i dont get playbook ppl you want android apps so bad just get an android tablet and still keep your pb. grant it your pb wont get used as much but hey you'll have your android apps

There is no sense talking about "android app" versus "playbook app". An app is an app. Just because it was coded for android first means nothing. Whatever it takes to get developers excited about Playbook and opens doors for Playbook users, the better.

Do you care or even know when you are running a "webworks" versus "Adobe AIR" versus "Flash" versus "native SDK" app on your playbook? Does it matter? NO! An app is an app. The playbook is versatile and powerful enough to run ALL of these different apps, including android.

I agree, if all you want are android apps get a cheap android tablet. I own playbook and think the android player can use a few tweeks to improve the interface and stability, and allow a reset, but RIM did a good job at hiding it so most people wouldn't really notice it much. That way, whatever you download from Appworld is just "an app" and nobody cares where it came from or how it was written.

I think developers are seeing how versatile Playbook development is, with WebWorks, Adobe AIR, native SDK... and smooth entry into the AppWorld market (no red tape!). This is a huge help to developers. As more Playbooks push into people's hands and then BB10 phones start selling, we will have exponential growth of this OS platform and lots of apps available for it. That is a good thing.

If you look at the playbook and then look at latest few phone put out by Samsung, this would be a match made to sell. Imagine the galaxy note with touch bezel and Qnx. I for one hope this happens.

Apple is the only guy who can go solo. The rest? Look at Microsoft-nokia, google- motorola. If RIM don't act, it has higher risk. A licensing deal with samsung, a mega player in smartphone space, not only add value to RIM in licensing revenue and Samsung's extensive customer reach, it also go a long way to dispell the fear that BB10 and RIM is dying. I think strategically, RIM has no choice but to look for licensing. It is too weak to stand on its own.

Forbes' take on this is rather bleak:

RIM: Samsung Taking A Stake? That's Hard To Believe
On a slow Friday afternoon, almost any rumor you want to dream up can move stock prices.

Exhibit A: Research In Motion shares jumped 93 cents, or 6.9%, to $14.38 today in a move that my buddy Tiernan Ray at Barron’s reports is due to rumors that Samsung might take a stake in the company.

Now, let’s be clear. Tiernan got this from BGC Partners analyst Collin Gillis, who himself thinks it is highly unlikely that Samsung would do such a thing. And really, propping up a dying RIM would make zero sense for a company that has everything to gain and nothing to lose from seeing them swept from the playing field. It would be like the Yankees heading into September deciding maybe they’ll lend Mariano Rivera to the Red Sox for a few weeks. It doesn’t make any sense whatsoever.

The idea seems to be that Samsung is a little freaked about Google buying Motorola Mobility; and I can see that. But let’s not forget that there’s a new OS in town – Windows Phone 7 – that is far, far more appealing than BlackBerry OS.

Seriously, there is really no reason for Samsung to throw perfectly good cash into a dying dog like RIM. I don’t buy it. And as for the stock, neither should you.

It's likely RIM will focus on business and software solutions, and sammy making the awesome hardware they are known for. The investment would be beneficial for both parties considering sammy is the first to make flexible LCD screen.

Samsung is already paying Microsoft for every Android produced, and agreed to develop a Windows Phone. So they're already diversified.

Any deal with RIM could be similar in nature, particularly since RIM recently acquired a radio technology company whose technology will be critical to the manufacture of cell phones using LTE.

Then there's the threat of Motorola, and the case brought by Oracle against Google starting in April.

So there are lots of reasons an enormous company like Samsung might want to sustain one of its customers.

Having said that, there appears to have been coordinated buying of RIM shares Friday that started before this story became public and that is what drove up the price. I think that buying is far more likely to have another motivation.

Eric Savitz piece in Forbes sounds terribly like someone trying to suppress a story they inadvertently released. The real question is why he felt it necessary to counter the story. Who is paying for this particular piper I wonder?

How is it that wp7 is more appealing than BBOS, it's been two years now that the naysayers have been telling us that wp7 was going to be the end of BB as the third major OS. This clearly never panned out as BBOS has far out sold the windows platform by a large margin. But that matters not to the naysayers as now it's wp8 that will wipe the earth of BBOS. BlackBerry old OS beat windows mobile platform. Now we're months away form BB10. Imo wp8 is doesn't stand a chance against RIM's intrenched enterprise lead.

This agreement if true would probably favour RIM financially, but most likely kill the Blackberry brand in the long run. Licensing the BB10 OS would mean Blackberry would lose that thing that makes it different from other mobile devices, just like Apple is different and BB's are different, all Android devices are pretty much the same. If the BB10 OS is licensed then a Blackberry ceases to be. Isn't this what RIM has been fighting to hold on to for so long and slugging it out as the stocks dipped? I love BB's because they're different and they work for me, designs are always uniquely different from others, do i want a BB in a Samsung skin, no thanks! After the Blackberry, Apple is next for me, BB10 goes general, i go back to Apple!

I believe both Samsung and RIM were honest in their statements a few months back, but I also believe there might be some truth to these rumours. What has changed - Samsung has seen BB10 in action on the Playbook, and they probably see it has the chance to be a differentiator for them in the marketplace without necessarily abandoning the Android marketplace they have helped to grow significantly. At the same time, they already license Windows and they realize they have not really been able to make a go of it, and if anybody will this year it will be Nokia - hard to compete with a partnership where billions of dollars have been committed by both parties. So Samsung knows that a couple of years out they could be left behind unless they think well ahead to their next move. As far as RIM, everybody agrees that the best scenario would be to go it alone. But I also think what has changed for RIM is that the ego of Balsillie is gone (which don't get me wrong helped them to grow as fast as they did) and has been replaced by the pragmatism of Heins. They can't sell Playbooks at $199 forever ($329 for a 7 inch 16 GB makes more sense), and so having a volume seller like Samsung along for the ride will get developers very interested in the ecosystem, there can be no question about that. And I find interest that now the story is Samsung makes better hardware then RIM when the story for the past few years has been RIM can make great hardware not software. Bottomline, Samsung making BB10 phones will clearly take some of the potential topline away from RIM, but more than likely what it will be really doing is taking away from Samsung Android sales, which right now RIM isn't getting anyways, so I think making BB10 overall stronger can only be beneficial for RIM long term and will definitely grow the bottomline much faster which is really more important at the end of the day. So although I think it is still only 30-70 that there is some truth here, it makes more sense today then it did even a couple of months ago.

At the end of the day RIM needs to do something to come out huge with BB10 to not only get sales rolling fast but also take back market share. Having Samsung in as a partner with a huge infusion of cash to get it done may be the answer, who knows.

Samsung is an amazing component company, a very good hardware company in the consumer market and a poor software company. That's why they make the components for the iPad, but the Galaxy Note is still stuck on Gingerbread.

RIM is a better hardware company than it is given credit for, and in fact a better software company. What it has not been good at is consumer. IBM lost its lead in the PC market and had to sell Lexmark and its PC division because it fundamentally didn't do consumer. HP wrecked the chance of webOS for much the same reason.

I suspect this is only a rumor. But I do think that a Samsung/RIM joint venture could "consumerise" Blackberry and help Samsung in the business market.

RIM should get Samsung to make its chips and screens. Wasn't BB 10 delayed because RIM couldn't get the chips in time to ship BB 10 phones earlier? Samsung makes very good displays and RIM could use better touchscreen phones. RIM's all touchscreen phone offerings are paltry to say the least. This partnership could benefit both parties tremendously.

Considering that Samsung is paying Microsoft a per device fee and not even using their OS and they might be facing a similar situation with Apple and the seemingly never-ending patent battles, it would make sense for them to adopt an OS that will bring with it more patent protection.

RIM could offer them a lower licensing fee as they would maintain the BIS/BES carrier fees per device sold.

If it is a "strategic" partnership with Samsung investing in RIM (which I don't really believe) it could allow RIM access to Samsung's product lines (screens) at more attractive prices.

With the move to BB10 and the ability of RIM's OS adopting an open platform stance, luring over even more developers would not be that difficult given the strong brand loyalty of Samsung and the ability to make money from App World without worries of people rooting and stealing your application.

Then again, I think this story is just Collin Gillis' attempt to make sense of the stock move when it's most likely to Chris' previous article about the short interest increasing on the expectation of a profit warning for RIM. Seeing as we are just twelve days away from earnings and no warning has been issued, that's likely what drove the buying as some realized they could catch short interest off-guard.

Well the way I see it, the move has already begun, we more and more see advertisement going towards the Bold and the be Bold. I bet they gonna keep the Bold form factor, maximize the BlackBerry fusion solution and let Samsung break loose on the other handsets (Tablets, touchscreen phones and TV ) The truth is that BlackBerry is a maker of good keyboard phone and a great os solution but sucks at doing anything else, so why not concentrate on what brought you to life, maximize the potential of the Bold brand and leave anything else to Samsung or HTC, with the coming of the iTV don’t you think that Samsung needs a response to that and what better than the BB 10 to do it, they make computers, why not powered them with BB10, RIM alone cannot achieve that they gonna need some partners and even though people think that Samsung doesn’t need RIM, Samsung would gain instant credibility in the Corporate World, something that they don’t have for the moment for the handsets. Or, better yet, the 1.5 B would be for the licensing deal of using BBM exclusively, that would be shocking but would definitely makes sense too. Like they say : Where there’s smoke, there’s probably fire

If Samsung was going to pay royalties on an operating system why would they pick RIM?
Windows 8 runs circles around QNX and Microsoft has way more experience than RIM at doing software. Personally I'm waiting for Win 8 to be ported to Playbook.:)

Playbook 64
Nexus S

I guess this is fantastic.

first of all, samsung is one of the top technology company which have AMOLED, ....

Samsung is going to ride as many horses (bada,droid,win (probably)...) Strategically it's no nonsense they acquire BB10 licence and inject some cash to ensure future...
Still, this remains speculation...

Samsung is going to ride as many horses (bada,droid,win (probably)...) Strategically it's no nonsense they acquire BB10 licence and inject some cash to ensure future...
Still, this remains speculation...

Samsung creates arguably the best Android phones available. I think a partnership between RIM and Samsung would be mutually beneficial to both. RIM couldn't just hand over BB10 and let Samsung go from there, they would have to collaborate when it comes to building hardware. How nice would it be to have a phone like the Samsung Galaxy with a RIM keyboard running BB10? That's a device I'd be first in line to buy.

Nobody wants to use bb10 it hasnt been tested yet and if its made by rim chances are its not a good bet end of discussion!