IBM Wants RIM's Enterprise Unit if BB10 Tanks

IBM is reportedly wanting to take over RIM's enterprise-services unit if BlackBerry 10 isn't successful.

Unnamed sources have stated that IBM is setting its sights on Research in Motion's (RIM) enterprise-services unit -- the smartphone maker's most valuable asset -- if BlackBerry 10 proves to be unsuccessful. This is the second time a well-known company has reportedly shown interest in RIM this week alone, the first of which was Samsung who is reportedly considering a licensing agreement or an all-out purchase.

Two sources close to the matter claim that IBM has made an informal approach about the possibility of acquiring the enterprise-services unit. This division operates a network of secure servers used to support RIM's devices, and is estimated to be worth around $1.5 billion to $2.5 billion, depending on the mix of included assets. As with Samsung, RIM is intent on riding out BlackBerry 10 until at least early 2013 -- wholly or via licensing -- before resolving to an actual sale of assets.

Peter Misek, an analyst at Jefferies & Co. in New York, told Bloomberg that splitting RIM's enterprise unit from hardware would be difficult because the technology is closely intertwined. But if separated successfully, RIM could manage a hefty $2 billion USD. Shaw Wu, an analyst at Sterne Agee & Leach Inc., claims the earnings would be more like $1 billion to $1.5 billion due to the difficult nature in separating the unit from hardware.

Bloomberg points out that RIM has $2.2 billion USD in cash and investments, and very little debt. If the enterprise division is actually worth $2 billion, then the BlackBerry maker's mobile phone business will offer little value to investors.

RIM's share of the global market was only 4.8-percent in the second quarter, down from 12-percent the year before. Google's Android OS climbed to 68-percent in the same quarter while Apple's own iPhone dropped down to 17-percent. RIM's CEO previously admitted that the company considered switching to Android before moving forward with the development of BlackBerry 10.

IBM recently made several acquisitions in online commerce and human-resource software, expanding its enterprise-based portfolio. Purchasing RIM's division would give IBM control over a secure and speedy email system that would be preferred by large corporations over the typical consumer-based products. The money earned from fees wouldn't be too shabby either: RIM took in $4.1 billion from mobile carriers for subscriber access in 2011 alone.

Kevin Parrish is a contributing editor and writer for Tom's Hardware,Tom's Games and Tom's Guide. He's also a graphic artist, CAD operator and network administrator.

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