The Case for Google's Acquisition of BlackBerry

Research in Motion's RIMM BlackBerry announced a slew of new handsets Wednesday, including the 4G Torch 9810, which is expected to be launched in August. Exclusive to AT&T T for the time being, all of the models are capable of speeds up to "nearly four times the network speed capability of previous models," according to RIM. "BlackBerry customers are passionate about their smartphones – and they know to come to AT&T for the best choice," said Jeff Bradley, senior vice president, Devices, AT&T Mobility and Consumer Markets. "From being the first carrier to offer the BlackBerry solution in 1999 to the broadest lineup of 4G-capable BlackBerry smartphones this year, we'll continue to offer our customers the leading BlackBerry portfolio in the U.S." The company's announcement of many new models comes as no surprise to technology market watchers. Management at RIM has taken a public lashing from critics in the past year, as competitors like Apple AAPL, Motorola MOT, and HTC invaded the company's market share. Perhaps most painful to shareholders is the company's precipitous fall in stock price as of late. Trading above $68 in February, shares have plummeted to below $25, leaving the company with a $12.6 billion market capitalization. While it's clear that RIM has an established and loyal customer base with its smartphones, its software continues to disappoint and frustrate users. RIM's proprietary software is very limited, and consequently is unattractive to developers. Unfortunately for RIM, BlackBerry's development of app creation and user excitement is behind competitors. While its hardware is widely praised for sturdy ruggedness and a strong, functional keyboard, BlackBerry software is years behind Apple's iOS and Google's Android. Its ample time for change. Google's primed in position to take a possible bid at RIM. RIM is losing market share rapidly, its stock price shows no sign of moving higher, and investors are nervous. All of the above mix for a hostile and volatile environment. Google could acquire RIM for a competitive price and implement its popular Android software on the devices. Users would enjoy the best of both worlds, and Google could boost its battle stance against Microsoft MSFT and Apple. While it would undoubtedly be a difficult deal to close and execute, the benefits for customers and investors could be formidable.