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26 Comments

Posted by hastings Thursday, Jul 15, 2010 680 days ago

If RIM purchased Palm you would not have seen WebOS hit a BlackBerry device.

Any interest they had in Palm would have been to acquire their huge patent portfolio. Don't forget, they have been around for a long time, and in that time they've created and licensed some pretty amazing stuff. They also have (had) a lot of talent on board, but none of that talent would have stuck around to get moved over to RIM. RIM isn't innovative enough to keep talent like that on board for very long, especially when Apple and Google are luring their employees away.

 
 
Posted by infinus Friday, Jul 16, 2010 679 days ago


i thought HP puchased Palm.

 
 
Posted by hastings Friday, Jul 16, 2010 679 days ago

They did. (=

 
 
Posted by devGOD Friday, Jul 16, 2010 679 days ago

Actually from what I've read in the comments people are looking at the situation as RIM could of had WebOS... the say reason Apple, Google, and a bunch of other top companies were interested in Palm it's not WebOS its, all 400+ patents that Palm holds and another 400+ in apps. So thats less lawsuits and deals needed when you own the rights to a lot of technology that companies like google, rim, apple, are using based on a palm license deal.

 
 
Posted by Bla1ze Thursday, Jul 15, 2010 680 days ago

The relation for QNX goes beyond automotive aspects and this is something thats kind of been overlooked. QNX develops:

"Middleware, development tools, realtime operating system software and services for superior embedded design"

Essentially, QNX could be the ones designing the next OS for BlackBerry. And yes, RIM should have bought Palm at all costs, lol. Even if they did nothing with them (which would have been a shame) they'd still have the patent portfolio and could have adapted some ideas from there. And well, maybe...just maybe they'd have gone beyond that.

I'm not talking WebOS on a BlackBerry but some of it's functionality would have been better. RIM's current push is for all HTML and Javascript apps. WebOS dev tools would make sense here and in turn, some of that would have filtered to the BlackBerry OS.

 
 
Posted by hastings Thursday, Jul 15, 2010 680 days ago

I disagree that RIM should have purchased Palm.

First off, their cash on hand situation is waning.

As of March 2010, they had $1.91B, down from ~$2.5B at the same time the year before.

As of March 2010, HP had ~$14B cash on hand, that means a lot more wiggle room for acquisitions and risk.

HP paid ~$1.2B for Palm, that would have nearly wiped out RIM from a cash standpoint. Given that RIM's stock has been getting beat up pretty bad lately, they're probably better off with the cash. In fact, RIM has begun buying back stock because of the slump, probably a safe bet.

In addition to the $1.2B necessary to acquire Palm, RIM would have had to incur ridiculous expenses that always follow acquisitions. It would have taken a lot of time to restructure their company and the operations, merging divisions, locations, legal fees, etc. All told, it would have been closer to their total cash on hand.

It would have been neat to see RIM get a piece of the "patent pie", but licensing the patents from HP will be much cheaper with a lot less risk.

 
 
Posted by sk8er_tor Thursday, Jul 15, 2010 679 days ago

RIM actually has $3,267,200,000 ($3.267 billion) net cash so you're statement above is incorrect.

 
 
Posted by hastings Thursday, Jul 15, 2010 679 days ago

Where did you get that number from?

Actually their cash situation was even worse than I read. I just went over their cash flow statement for Q4 (year end) 2010, and it's actually $1.5B as of February 27th, 2010.

http://www.rim.com/investors/documents/pdf/pressrelease/2010/Q4_press_re...

Granted, $1.5B in cash is pretty healthy, considering a lot of companies have serious issues with cash flow, but it wasn't enough to comfortably acquire a company the size of Palm. (comfort level compared to HP)

There are ways to raise capital for such investments, I won't deny that, but they have to keep their shareholders happy (I'm one of them), and they played it safe.

 
 
Posted by sk8er_tor Friday, Jul 16, 2010 679 days ago

Go here: http://www.rim.com/investors/documents

Click on the first PDF: Q1 Fiscal 2011 Financial Information

Read the first paragraph on page 2.

 
 
Posted by hastings Friday, Jul 16, 2010 679 days ago

I figured you were looking at a different time period.

Don't forget, we're talking about should they have purchased Palm earlier this year. You're in a different fiscal year altogether.

Further, you're adding in short and long term investments, whereas I'm simply referring to the cash on hand. Check out page 7, the last four lines for a break down of the differences between their cash on hand, and equivalents. (short/long term investments)

I knew I had to get that $1.9B number somewhere.

 
 
Posted by sk8er_tor Friday, Jul 16, 2010 679 days ago

Not to drag this on (I promise, this will be my last post)... I was looking at the next fiscal year because you said the date you used is March 2010. RIM's fiscal year ended at the end of February which was Feb 27, 2010. Cash and cash equivalents were $1.551 billion. A year ago, Feb 28, 2009, cash and cash equivalents were $835 million. I am not including short and long term investments. I'm not sure where you're seeing their cash go down from a year ago. Also, even though I'm not including them, the investment community refers to long and short term investments as cash. You also didn't look at HP's debts which are quite high with numerous recent aquisitions. Anyhow, I agree with you that RIM should not have bought PALM.

 
 
Posted by hastings Friday, Jul 16, 2010 679 days ago

Haha, touche. I'm not trying to argue here, just looking at some financials. When I said March, I meant literally the first day of March, or basically year end 2010.

It's true that investments are highly liquid, I'm just trying to keep my reasoning simple here since this isn't an investment website.

According to some leaked information RIM placed a bid on Palm, HP countered, and RIM didn't up their bid. I think they realized that it might have put them in a less than ideal position financially.

Personally I'm glad that HP got a hold of Palm, they have a huge amount of resources and if anybody can make a WebOS tablet, it's HP. I think we can both agree that would be a pretty glorious thing.

Still, I'll always wonder what could have been if RIM upped their offer... *stares off into the distant sky*

 
 
Posted by infinus Friday, Jul 16, 2010 679 days ago

what are you saying....
webOS on BB. i thought HP is about roll out some webOS based tablet.

QNX rtOS is best in automotive domain.
i hope RIM + QNX will come up something like NOKIA Terminal Mode for automobiles.

Rest, Time Will Tell

 
 
Posted by Marine One Thursday, Jul 15, 2010 680 days ago

Coming back to Blackberry if they released a truly consumer device with cutting edge hardware, running some kind of Blackberry flavored version of Android.

It could actually be a cool as hell device if RIM would get off their ass and start innovating. The Google experience with the Blackberry messaging experience.

 
 
Posted by BerryGuy25 Thursday, Jul 15, 2010 680 days ago

Key word is "would". Although RIM buying Palm would have been extremely favorable to the company and a fanboy's wet dream, I doubt RIM would have utilized it in a Blackberry device. Like the first post said, it's patents. Given RIM's stance on the carriers & data as well, I could see them actually stripping parts away from WebOS. Would have been epic though, it would have put RIM on a whole new playing field with the big boys and given their position already, would have made it easy to seep into their market share.

One can only dream now...

 
 
Posted by BLACKBERRY619 Thursday, Jul 15, 2010 680 days ago

?????

 
 
Posted by Ebscer Thursday, Jul 15, 2010 679 days ago

That said, the apple and RIM bids both appeared to be quite a bit on the low side.

 
 
Posted by Slash82 Thursday, Jul 15, 2010 679 days ago

I'd say RIM should invest in to new developments.
Like new devices, new software etc...

There is no real BB-style device in sight, OS6 also seems
to be a mix up between already existing OS versions, like: Apples and Android...

It's more than time for to bring something really new, inovative...

RIM brings nothing new and the want Palm??
Palm did suffer from that thing, which RIM is stearing to...

 
 
Posted by Imayam Thursday, Jul 15, 2010 679 days ago

WHat it means is that CrackBerry will keep putting out boring, nearly-useless "filler" articles until something exciting happens with BB.

 
 
Posted by El Band Geek Thursday, Jul 15, 2010 679 days ago

Personally, I'd love for Google and RIM to hookup, if not through a merger, then at least a corporate partnership. Then when my next upgrade comes around I won't be conflicted about switching to Android or sticking with BlackBerry.

In all reality, the two combined would be a force to be reckoned with. Google has so far failed on the enterprise front so they could keep BBOS and BES for corporate use (in the same way WinMo6 is getting reenvisioned) while consumer devices can run Android and get rid of BIS in favor of integration with google cloud services and port over the things like BBM and the like. The blackberry brand is still arguably stronger than both Palm and WinMo right now. Comined with Google they'd have alot of marketing muscle that could stand up well against Apple.

 
 
Posted by Kevin Michaluk Thursday, Jul 15, 2010 679 days ago

google's ceo in the past has been caught on film a few times using a BB!

 
 
Posted by RileyFreeman Thursday, Jul 15, 2010 679 days ago

pls. bb's definitely need this. the other options are pretty terrible

 
 
Posted by cwong15 Thursday, Jul 15, 2010 679 days ago

An ex-QNX person with connections claims that RIM has been hiring QNX insiders for 2 years. Since 2 years is RIM's stated product development cycle, we might hear something interesting soon.

 
 
Posted by Irving94 Thursday, Jul 15, 2010 679 days ago

Did you guys read the article on Gizmodo too? It says RIM actually was supposed to be the winner and they completely blew it.

 
 
Posted by HTC_Droid_EvO Thursday, Jul 15, 2010 679 days ago

Of course they did....this would have been a great matching

BB 6 would not look so generic ....HP even plans to utilize there OS

Research in slow motion ...strikes again

 
 
Posted by documetnsithemes Monday, Jul 19, 2010 676 days ago

Its a wonderful topic about this artilce So Research in Motion did look at buying Palm... what does that mean for BlackBerry beyond 6?,i read this artilce and agree with this artilce.Thanks to talking us about this article.

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