Microsoft ‘may purchase BlackBerry’

Source: Technology Digital

Date :8/31/2007 5:03:20 AM

Canadian BlackBerry maker RIM’s shares rose following unconfirmed speculation that Microsoft was considering a bid.

The rumour came on the back of Google’s declared intention to develop its own mobile operating system.

Though it was attended by some scepticism, it was enough to boost RIM’s shares to a record C$89.68 (£42.26, or US$85.07) before they closed a percentage point up at C$87.71 (£41.18, or $82.94) on August 30.

It was also a factor in a rise in the value of the Canadian dollar on international money markets.

Smartphone weakness

Some commentators point out that it’s hard to see how the putchase of a $55 billion company would be cost effective in view of the fact that RIM (Research in Motion) has an operationg system that is in competition with those used in all the major global markets such as Symbian OS.

Supporting the rumour, however, is the fact that Microsoft has an undoubted weakness in the growing smartphone market and may feel that acquiring BlackBerry would give it a greater share of the mobile market than has been achieved through licensing Windows Mobile

August 31 2007