Kara Swisher on Microsoft’s Mobile Dilemma

Kara Swisher on the dwindling enthusiasm for Windows Mobile:

Indeed, this is why Microsoft and its giant wallet might be better served by buying one of the big and more established telecom companies, such as Research in Motion, Palm or even — as another Microsoft exec said to me, “Why not?” — Nokia.

Nokia has a market cap of close to $50 billion, with RIM at close to $38 billion. And Palm? A paltry $1.74 billion. Microsoft’s current valuation is $246 billion, and the company has $40 billion in cash and marketable securities on hand. […] And, in fact, many sources at Microsoft have told me that CEO Steve Ballmer has expressed interest in buying RIM many times (while also dismissing any interest in Palm).

RIM seems like a natural fit, in terms of its customer base and the whole look and feel of BlackBerry software. Palm would be the bolder play.

Thursday, 11 February 2010