Open Letter to Microsoft (MSFT), Oracle (ORCL)
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Dear Microsoft (Nasdaq: MSFT) and/or Oracle (Nasdaq: ORCL):
Research In Motion (Nasdaq: RIMM) is looking like a pretty good deal right now, eh? A series of goof-ups has left the Waterloo, Ontario, techie vulnerable. So the question is: What will it take for you to make a move?
RIM has a decent tablet in PlayBook (*cough* Microsoft), or Oracle could use its expertise (and RIMs network of millions) and software to break into the enterprise mobile market (ala Hewlett-Packard (NYSE: HPQ) and Palm).
With shares in the mid-20s, you're looking at a market cap of $13 billion or so, and both of you have plenty of cash on the books for the deal, or a great credit rating at the very least. And Microsoft, you don't ming shelling out a little extra for a company, do you?
Streetinsider believes shares could hit the mid-20 dollar mark based on a 4.8x multiple, at RIM's own outlook for FY12 EPS of $5.25 (at the low-end). The combination ends up with a valuation of about $25 per share. The multiple was derived from RIM pre-warning multiple.
All we're saying is, just think about it. Think about those 17,500 employees shivering in their cubicles right now.
Luvs!
Streetinsider.com
Research In Motion (Nasdaq: RIMM) is looking like a pretty good deal right now, eh? A series of goof-ups has left the Waterloo, Ontario, techie vulnerable. So the question is: What will it take for you to make a move?
RIM has a decent tablet in PlayBook (*cough* Microsoft), or Oracle could use its expertise (and RIMs network of millions) and software to break into the enterprise mobile market (ala Hewlett-Packard (NYSE: HPQ) and Palm).
With shares in the mid-20s, you're looking at a market cap of $13 billion or so, and both of you have plenty of cash on the books for the deal, or a great credit rating at the very least. And Microsoft, you don't ming shelling out a little extra for a company, do you?
Streetinsider believes shares could hit the mid-20 dollar mark based on a 4.8x multiple, at RIM's own outlook for FY12 EPS of $5.25 (at the low-end). The combination ends up with a valuation of about $25 per share. The multiple was derived from RIM pre-warning multiple.
All we're saying is, just think about it. Think about those 17,500 employees shivering in their cubicles right now.
Luvs!
Streetinsider.com
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