At $40 a share, or an almost 55 percent markup to yesterday’s price, RIM would be valued at 7.29 times next year’s earnings, according to data compiled by Bloomberg. That’s still less than the average communications equipment provider, which trades at about 12.3 times profit, the data show.RIM also generated $2.87 billion in free cash flow, or cash from operations after capital expenses, in the past 12 months, the data show. That equals about 21 percent of its market value, the highest proportion in the industry.
Among potential acquirers, Microsoft could build its share in smartphones and gain a device to complement its Windows Phone 7 mobile-phone platform, said BMO Harris’s Taylor.
I hadn't seen this coming, which might explain my failure to snag that coveted spot of VP for Strategic Acquisitions (I also think they're still blaming me for Microsoft Bob. Hey, I thought it was a promising idea -- just not cute enough. We shoulda gone with the Hello Kitty theme.). It looks potentially a good pickup for Redmond; but I think that there is a bit more going on behind the scenes.
Given the brutal economy in the States, the people at Microsoft would have to be nuts not to be concerned about their company's future, and might well be looking at diversifying beyond the U.S. border. And what better place than the culturally-similar, G8-leading economy just a few miles to the north?
If the nightmare scenario happens and that clown in the White House is somehow reelected through some miracle (or more likely through massive voter fraud) then Canada could become a haven for some iconic American corporations.