Posted on January 22, 2009, at 1:44 pm .
While we have closely covered the back and forth between RIM and Canadian security specialist Certicom, we’ve never really taken the time to discuss why exactly RIM put forth the hostile bid after months of courting. Thankfully, James Rogers of TheStreet.com has done the work for us in a recent article:
Certicom develops a technology called Elliptic Curve Cryptography (ECC), which is used to secure data on a range of devices, including smartphones. The National Security Agency uses the same technique, and Certicom licenses its technology to a range of companies, including IBM, General Dynamics, Motorola and RIM.
Certicom is also openly canvassing other suitors, which could increase the pressure on RIM. Last month, for example, Certicom granted a number of un-named parties access to its ‘data room’ in an attempt to drive up its valuation. “The information provided in the data room is intended to facilitate offers reflecting the fair value of Certicom from interested parties,” it said, in a statement.
So in effect, by failing to takeover Certicom, RIM has lost out in three different ways: saving money by eliminating the ECC licensing fees, making money from licensing the technology to competitors, and extending its competitive advantage on security. The question becomes how much this failure has hurt RIM in the long run. Post a comment and let us know what you think.
|via TheStreet|
Posted on January 22, 2009, at 9:14 am .
Potentially big news coming via the Globe and Mail this morning regarding RIM’s braintrust. Canadian regulators are seeking a record penalty as high as C$100 million from Co-CEO’s Mike Lazaridis and Jim Balsillie for their role in a stock option accounting controversy dating back to 1996. For those that don’t remember, this is the same scandal that led to Balsillie stepping down as RIM Chairman.
In 2007, a special committee of RIM’s board investigated the back-dating issue, and determined the company had backdated more than 40 per cent of stock options granted to employees since 1996. It also concluded that 12 of the 16 option grants made to Mr. Balsillie and Mr. Lazaridis between 1996 and 2006, to acquire a total of two million shares, were priced using an incorrect date.
Reached last night at his home, Balsillie declined to comment on what he described as “rumours,” the paper reported. Neither Lazaridis nor his lawyer could be reached. A spokeswoman for the OSC said: “We can’t comment on enforcement cases.”
The Ontario Securities Commision is apparently pushing for Balsillie to pay the bulk of any penalty and relinquish his seat on RIM’s board of directors for a period of time. If the full $100-million penalty were approved, it would rank as the largest penalty paid by individuals to the OSC.
|via Globe and Mail|
Posted on January 21, 2009, at 11:08 am .
When I posted yesterday that it seemed like RIM was nearing a point in their pursuit of Certicom where they’d have to cut their loses and quit, I didn’t realize they were standing on it (maybe I know more about hostile takeovers than I previously thought).
After mulling over options to appeal Monday’s Ontario Superior Court order granting Certicom’s request for an injunction, RIM in the end decided to withdraw their CDN $66 million hostile takeover bid, saying the ruling had left them no option.
Monday’s Ontario Superior Court order granting Certicom’s request for an injunction meant the conditions of the offer made in December could no longer be met, RIM said in a statement.
While this is obviously a fairly public black eye for RIM, I wonder if they’re better off in the long run failing to acquire Certicom. Whatever value the company has in technology or personnel, it would have been a logistical nightmare trying to integrate a company that had fought tooth and nail to remain independent.
|via Reuters|
Posted on January 20, 2009, at 12:00 pm .
The ongoing struggle between RIM and Certicom continues. When last we left these two companies, RIM had extended their offer to Certicom shareholders until January 27th.
Since then, the Ontario Superior Court has granted Certicom’s request for an injunction, and blocked RIM’s hostile takeover. RIM is now reportedly mulling its options and considering an appeal to the Superior Court. Without an appeal, the court action would also prohibit RIM from participating in any auction for Certicom without Certicom’s permission.
Unfamiliar in the ways of hostile takeovers, I’m not certain at what point RIM should decide to cut its losses and quit pursuing Certicom, but I’m certain they’re nearing it.
|via Reuters|
Posted on January 16, 2009, at 12:50 pm .
Lost in the flowing rush of mobile technology is the potential effects of all those electrons and radio waves on our bodies after extended use. I’m sure it’s something most BlackBerry users don’t think about while taking a call or writing an email, but it certainly deserves pause for consideration.
Thankfully, the January 13 online issue of the Journal of the National Cancer Institute has crossed one potential concern off the list. A study contained within the issue reports that mobile phone use is not associated with the risk of melanoma of the eye. Although there is no direct link between exposure to radio waves and DNA damage, which can lead to cancer, studies have examined the possibility of an association between mobile phone use and melanoma of the eye, also called uveal melanoma.
“In conclusion, we observed no overall increased risk of uveal melanoma among regular mobile phone users or users of radio sets in Germany, where digital mobile phone technology was introduced in the early 1990s,” the authors write.
Whew! Now if we could only get these doctors to find a cure for BlackBerry Thumb.
|via CN|
Posted on January 13, 2009, at 10:39 am .
We have some happy news today, as another country has joined the BlackBerry Nation. Rwandan carriers MTN-Rwandacell and Rwandatel have announced official support for BlackBerry service is coming soon. While there is no set device listing or official launch date, Rwandacell insiders note that BlackBerry devices can already run on their network. You can most likely expect the BlackBerry Curve and BlackBerry Pearl at launch for both carriers.
Rwanda will join regional counterparts Kenya, Tanzania, and Uganda currently using Blackberry services. Welcome to the club!
|via BBNews|
Posted on January 12, 2009, at 12:35 pm .
If even a year ago you had told me that in early 2009 Palm would be resurgent and Motorola would inching ever closer to the deadpool, I would have slapped you like a young Cary Grant and sent you to the looney bin. Well, make room for me too, because it seems like the whole world has gone looney tunes.
Our friends at Phone Scoop are reporting that Motorola’s handset division is expecting a large round of layoffs as soon as this week. While Moto’s set top box, networking equipment and enterprise device businesses will not be affected, up to 50% of the entire handset operation may be gone. Phone Scoop is also reporting that Motorola will not have a booth at CTIA in Vegas this April, and is looking to launch only a dozen handsets per year, all based on Google’s Android OS.
Sad times for a company that used to define cellphone cool with the RAZR, and had a decent BlackBerry competitor in the Moto Q. Here’s hoping that putting all their eggs in the Android basket will save the company.
|via PhoneScoop|
Posted on January 5, 2009, at 10:51 am .
Verizon and AT&T have been neck and neck for the right to call themselves America’s largest carrier, but on January 9th there will be one clear leader. Verizon has announced that their purchase of Alltel, the fifth largest telecom in the United States, will close on January 9th. The merger will bring Verizon’s total share of the market to a whopping 85.2 million wireless subscribers.
The deal includes paying $5.9 billion for Alltel’s privately held equity, as well as assuming $22.2 billion in debt. To finance this massive purchase Verizon Wireless has received commitments from eight financial institutions to provide $17 billion of cold, hard liquidity. It looks like the Verizon ‘can you hear me now’ guy will be working overtime to check up on all his new customers.
|via IntoMobile|
Posted on December 31, 2008, at 4:12 pm .
We wondered yesterday how RIM would respond to Certicom’s very public plea to shareholders to ignore the Waterloo company’s takeover bid. It seems as though we didn’t have to wait very long to receive our answer. RIM has announced that it will extend the expiry date of its offer to acquire all of the outstanding common shares of Certicom for CDN $1.50 in cash per share to January 27th, 2009. The previous deadline was January 15th, 2009. You can read the full release below.
Press Release
Research In Motion Limited announced today that a wholly-owned subsidiary of RIM will be extending the expiry date of its offer to acquire all of the outstanding common shares of Certicom Corp. for CDN $1.50 in cash per share from January 15, 2009 to 5:00 p.m. (Toronto time) on January 27, 2009. All other terms and conditions of the offer remain unchanged. The formal notice of extension will be mailed to Certicom’s shareholders next week. As previously disclosed, Certicom is bringing applications before the Ontario Superior Court of Justice and the Ontario Securities Commission to prevent RIM’s offer from proceeding. RIM is vigorously opposing such applications and will bring its own proceedings before the Ontario Securities Commission to cease trade Certicom’s shareholder rights plan. RIM is extending the offer so that the court and regulatory proceedings can be dealt with in an orderly time frame within the context of RIM’s offer.
Continue reading ‘RIM extends Certicom offer to January 27th’
Posted on December 30, 2008, at 12:16 pm .
It’s amazing that what started as a fairly innocuous attempt to purchase a security software firm has quickly devolved into a very public takeover battle between RIM and Certicom. In this round, Certicom has come out swinging, publishing a fairly large newspaper ad urging shareholders to ‘REJECT THE HOSTILE BID’ and not tender their shares at RIM’s $1.50/share offer.
Certicom claims that RIM’s offer fails to provide fair value for their IP, cash on hand and improving financial performance. In addition, Certicom states RIM has violated confidentiality agreements and has contacted the Ontario Securities Commission for a cease trade order. We’ll keep a close eye on the story to see how RIM responds.
|via MobileSyrup|
