Facebook RIM combination could compete with Apple, says Mike Abramsky

Mike Abramsky says RIM's services business, which is generating about $4-billion in revenue, would immediately double Facebook's profit and give it the mobile platform it needs to compete with Apple and Google.
Mike Abramsky, who was one of Research in Motion’s most visible supporters during his seven years at RBC Dominion Securities, says Facebook is a realistic potential suitor for RIM. Though Abramsky says “it’s hard to know what’s in Facebook’s mind right now” he believes the recent high-profile IPO has a serious mobile problem.

Abramsky, who left RBC in April for Red Team Global, appeared recently on Bloomberg Television’s program Bloomberg West and told host Jon Erlichman he believes the majority of the value of RIM is in its secure network, not in its hardware business. He says RIM’ services business, which is generating about $4-billion in revenue, would immediately double Facebook’s profit and give it the mobile platform it needs to compete with Apple and Google.

On May 29th, RIM announced it had J.P. Morgan and RBC Capital Markets to assist the company with a strategic review to look at the “feasibility of various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives.”

Research in Motion, whose shares are trading near decade lows, last week surrendered the title of Canada’s most valuable tech stock. The company was surpassed in terms of market capitalization by both CGI Group and SXC Health, although the Waterloo tech giant is still far and away the leader when measured by revenue.

Click here to view the full interview.

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Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

View Comments

  • What a moron.

    Most of RIM's remaining customers are high powered business types.

    They're all going "hey, I got a Facebook phone now. Am I ever cool!" ... not.

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