Five Things Amazon Could Do with Research in Motion

Roughly six months ago, Amazon was on the verge of acquiring Research in Motion. That's according to a Reuters exclusive, which claims that Amazon AMZN hired an investment bank this summer to review a potential merger for the BlackBerry maker. While some have questioned the validity of the report, the timing makes perfect sense. After all, it was during the summer that Google GOOG announced its plans to acquire Motorola MMI, as reported by the realtime newsfeed Benzinga Pro. At that time, many believed that Microsoft MSFT would be urged to go through with its rumored-but-never-confirmed plans to buy Nokia NOK. Microsoft spent so much money acquiring Skype that most people just assumed the Windows maker would be willing to invest in any company available. Thus far, that has not been the case. “At the right price it makes sense, but right now it's not clear,” Sterne Agee analyst Shaw Wu told Benzinga this morning, speaking about the failed acquisition. “Right now RIM is valued at $7 billion. They probably won't take an offer unless it was around $10 billion.” Long-term, Wu said that he's not clear about the value of Research in Motion, and that he thinks Microsoft would make the most sense in purchasing the company. But in the event that Microsoft had decided to buy Nokia (or some other tech giant), Amazon would have had to act fast. Amazon wants to be more than an online retailer; it wants to be a tech company. With the Kindle e-readers, a brand-new tablet, and a Kindle Fire-inspired smartphone rumored to be on the way, Amazon appears to be headed in the right direction. And while Research in Motion may not have been the right company for the Kindle maker to acquire, it cannot be faulted for exploring this option. Worldwide, the BlackBerry name is still very strong. Research in Motion also has a number of patents that could come in handy if Amazon should ever wind up in court with Apple AAPL, a fate that seems inevitable considering how sue-happy the Mac maker has become. From Research in Motion's RIMM perspective, an Amazon buyout could be just what it needs to save the company. With a strong brand of smartphones already created, Amazon would be unlikely to abolish the BlackBerry name. Rather, it would likely do everything in its power to revitalize the brand and produce a phone that is truly (finally!) comparable to the iPhone. It may need to go through a few revisions – we saw what happened with the first Kindle Fire, right? – but the results should be amazing. Or at least they could have been. What else could Amazon have done with Research in Motion? Let's take a look. 5. Bring the Kindle and BlackBerry Brands Together But not as the KindleBerry…or the BlackFire, for that matter. Rather, Amazon could bring the two product lines together for a marriage of features, functionality, and innovation. It wouldn't be an overnight success, nor would the evolution be quick. But in time, the two companies could have produced a handful of impressive products. 4. Create a New Mobile OS Screw Android and WebOS – it's time for Amazon to reinvent the wheel and produce a great OS of its own. With the power and resources of Research in Motion, Amazon would have been in a great position to make this happen. 3. Sue the Competition Just For Fun Why wait for Apple, Samsung or HTC to launch a legal assault? With the patents acquired through a Research in Motion acquisition, Amazon could sue the competition without even designing a single new product. That's the beauty of patent law; you don't actually have to work to make a buck. Note that when I said “beauty” I was being 100% sarcastic. The truth is that I think patent laws are terribly ineffective. I am also strongly against companies who are quick to sue over patent infringement. That said, I still think it would be a little amusing to see Amazon, a company that started as nothing more than an online retailer, win a few patent battles just by acquiring a large tech company. 2. Seek Out New Areas of Innovation Right now, Amazon's primary goal is to acquire as many customers as possible. Whether they buy an Amazon-branded product or something from a third-party does not matter; all that the retailer really wants is to gain your business in any way possible. Long-term, this objective is going to change. And when it does, the company is going to need creative and innovative, Amazon-made products to lead the way to victory. As of December 2011, the company's most innovative product was still the Kindle e-reader. That's great and all, but can you imagine where Apple would be today if its most innovative product was still the iPod? Never mind the iPod Touch – I'm talking about the old iPod. It is a great MP3 player, but products need to evolve, and companies need to continue adding to their product lineup. That's what Amazon is just beginning to attempt to do. And with Research in Motion under its control, it might have had what it needed to make this dream a reality. 1. Disrupt Apple's Retail Dominance Walk into any Best Buy BBY and what do you see? Among the high ceilings, the sea of blue paint, and the cluster of generic-looking aisles is one white, bright section with a giant glowing Apple. This area belongs exclusively to the Mac maker; you won't find any computers from Sony SNE, Hewlett-Packard HPQ or anyone else in this section. No other company is given this kind of exclusive treatment, and while I am sure that Apple pays heavily for it (or perhaps it is Best Buy who pays?), the benefits are insurmountable. Amazon is the one company that has the reach and the power to put an end to Apple's dominance – or, if nothing else, to compete with the iPhone maker on a level playing field. That's not to say that any of Amazon's current in-house products can compare to Apple's (they can't). Research in Motion's devices are not any better. But in terms of marketing muscle, distribution power, retailer presence, and other key factors, Amazon could easily buy a big, exclusive spot to promote its products in Best Buy stores, among other retailers. Amazon could be especially strong in retailers where Apple's presence is limited, such as Target TGT, or restricted to a vending machine, such as Macy's M. For the sake of argument, let's suppose that all that effort is fruitless because Amazon's products are still inferior. Long-term, that's important. But in the near-term, Amazon could expand quickly and steal some of Apple's thunder. Which is what the Kindle Fire is doing, isn't it? Follow me @LouisBedigian