BlackBerry Maker RIM Again Subject of Takeover Talk

Ever since the introduction of its first BlackBerry more than a decade ago, Research in Motion has defied expectations that it would be gobbled up by a larger rival and has effectively created the market for smartphones. But as Google moves to buy Motorola Mobility, RIM, already under pressure from diminished prospects and declining market share, is once again the subject of takeover talk.

RIM has plenty to offer suitors. Despite reducing financial forecasts, the company remains firmly profitable. In the latest quarter, the handset manufacturer reported net income of $695 million, down from $769 million in the quarter a year ago. BlackBerry, too, remains a valuable brand, even as its market share declines. It is the device of choice for corporate customers in important industries like financial services and law enforcement, which depend on the unique features of the BlackBerry to safeguard their e-mail. The security stems from RIM’s proprietary global network, a system that is hard to duplicate and also generates recurring revenue for the company.