Research In Motion buyout rumored
Research In Motion (maker of the popular Blackberry device) is the subject of the latest Wallstreet rumor. Word on the street is HP will buy it up to get access to the Blackberry which is
very popular in the corporate market. Enough investors feel that the rumor is accurate to
knock the stock up 13% late last week. The stock closed Friday just short of its 52-week high at $27.28.
A takeover at this point is risky because RIM is in
danger of having to put a stop to BlackBerry sales. That would be a company-killer, and so that risk must be resolved before a buyout would be approved by shareholders (of HP).
