Investopedia: The Obligatory RIM Merger Speculations

When former high-fliers come down hard, there is often a thriving trade in M&A speculations. Maybe it feeds on the hope of bruised shareholders that they'll get some of the money back, or the hopes that the shareholders in the rumored acquirers will get the chance to buy crumbled dollar bills at a big discount. Whatever the motivation, the troubles at Research In Motion (Nasdaq:RIMM) have now put this stock on the M&A hot stove.

A Long and Fast Fall From Grace 

Three years ago, RIM shares cracked $140 and the company's devices were so popular they were often referred to as "Crackberries." Then along came Apple (Nasdaq:AAPL) and its iPhone, Google's (Nasdaq:GOOG) Android platform, and a host of phones from improbable contenders like Motorola Mobility (NYSE:MMI), HTC, and Samsung, often powered by chip architecture licensed from ARM Holdings (Nasdaq:ARMH).

Since then, RIM has been losing market share like water through a sieve, mirroring the decline in Nokia (NYSE:NOK). Making matters worse, the company's line-up is aging, there aren't many exciting models in the near-term pipeline, and the company seems to be talking a little too much about its offerings for the lower-end of the market. While chip investors eagerly wait to tear apart new models from Apple or try to find hidden meanings in press releases and speeches, nobody seems to care about who Research In Motion is building into their phones - perhaps the best sign of all that investors have written off RIM. (For related reading, see How To Profit From Debt Securities In Failing Companies.)

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