Four reasons why Microsoft isn't buying RIM

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It's obviously close to the end of the summer, and the news is slow.  How else to explain the rumour that Microsoft is planning to acquire RIM?  Wishful thinking, or too much BC Bud? Here are 4 reasons why it makes no sense.

1. Sales: Microsoft already has a strong mobile franchise in Windows mobile.  A year ago it had almost reached the North American run rate of BlackBerry.  Since then the Pearl and Curve have shipped, which have bolstered RIM's results, but nonetheless, the two companies are very competitive.  Besides, Microsoft doesn't typically buy companies to acquire customers.
2. Technology: Technically, they have very similar capabilities.  RIM does push email better.  Microsoft does media better.  But both have near identical platforms on the handheld and server.  RIM runs a large network operations center as well, which is one of the reasons their email is so good.  Microsoft has the ability to build a NOC if they want one. 
3. Price: With a market cap of $50 billion today, RIM would be expensive for Microsoft.  Sweeten the deal by offering RIM shareholders a 25% premium on their stock, and you have an acquisition price of $62.5 billion.  That's 24% of Microsoft's market cap.  Too rich, even for them.
4. Partnerships: RIM already has a strong relationship with Nokia… Microsoft's arch-rival in the mobile space. 

'nuff said. I'll donate $100 to the EFF if I'm wrong.

Alec Saunders is the Vice President of Developer Relations for BlackBerry maker Research in Motion. This is his personal blog, with his personal viewpoints. Prior to this Alec was the CEO and co-founder of Calliflower — the easiest way to hold a meeting, online, on a conference call, or on the go. A double-decade veteran of product management and marketing, he spent nine years at Microsoft where he helped launch Windows 95, the first two versions of Internet Explorer, the Universal Plug and Play initiative, the push into home markets, opt-in email marketing and what might well go down in history as the very first direct email list ever.

Tagged as: microsoft, Nokia, RIM