RIM looking to sell NewBay: report
13 August 2012
Struggling BlackBerry smart phone maker Research In Motion (RIM) is looking to sell its cloud services provider NewBay and some other recently acquired minor assets, as part of its strategic review process, Reuters reported over the weekend, citing a source familiar with the matter.
Waterloo, Ontario-based RIM had, in October 2010, acquired Dublin, Ireland-based privately-owned NewBay, a provider of photo, video, and social-network tools for smart phones, for reportedly around $100 million. (See: Research In Motion to buy Ireland's NewBay for reported $100 million)
NewBay develops mobile-phone software that allows users to create, store, and share digital content in the cloud.
Its flagship LifeCache software is used by 80 million subscribers worldwide, including telecom carriers like Verizon, AT&T, T-Mobile USA, Deutsche Telekom, US Cellular, Telefónica O2, France Telecom Orange, and Telstra, who use it to provide services such as online photo albums, automatic updating of social network status and online address books.
RIM's newly appointed CEO Thorsten Heins had, in May, hired JP Morgan and RBC Capital Markets to conduct a ''strategic review'' of its business, including a sale.
Once a dominant force in the smart phone segment, RIM has seen its stock value plunge 75 per cent last year. Its market value is a mere $7.3 billion, compared with $29.4 billion a year ago, and a fraction of over $70 billion in 2008.