Martin Wolf News

January 24, 2012

Bloomberg News

RIM's New CEO Unlikely to Halt Market Slide
HERE    
In an article published in yesterday's Bloomberg News, Marty Wolf was quoted on his views of the January 22 appointment of Research in Motion's new CEO Thorsten Heins. 
 
Heins, a RIM insider who has served as the company's COO since 2007, succeeds Co-CEOs Jim Balsillie and Mike Lazaridis, who have come under criticism as Apple Inc. (AAPL) and Google Inc. (GOOG) have pulled ahead of RIM in U.S. smartphone sales in recent years.

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RIM stock slid 8.5 percent to $15.56 yesterday at the close in New York, the biggest drop since December 16. Over the past 12 months, the shares have fallen 75 percent. 

 

Said Marty Wolf of the appointment, "The longer the new CEO operates the business with the current mandate, the more value he will destroy."

 

As we have always noted at martinwolf in our advice to companies seeking to create enterprise value, what you do in the market matters and growth for growth's sake is not enough.

 

Many companies are lured into growing revenue by pouring resources into the markets of today, the now markets. While it may seem smart - and it always seems safe and familiar - it's actually a high-risk game. Today's markets, especially in technology, can rapidly give away to new markets.

  

In our view, this is exactly what has happened to RIM. Blackberry devices captured the market because they were great email machines at a time when the market wanted email more than anything else. But RIM failed to evolve its Blackberry platform as the market changed, and now the Android and iPhone platforms have taken away a market that RIM once dominated.

 

The Bloomberg News article pointed out that RIM's revenue declined in last year's second and third quarters and net income dropped in each of the first three periods. The company is expected to report decreases for both for the final three months, according to analysts' estimates compiled by Bloomberg.  

 

"People are voting with their feet," said Marty Wolf in the article. "It's clear to me the company can't stay independent."

  

To see the entire article, go here.

  

To learn more about martinwolf, contact Tim Mueller at tmueller@martinwolf.com

 

About martinwolf    

 

Based in Silicon Valley, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 100 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.

   

December 1, 2011

Softchoice Corporation (TSX: SO) announced it has it has fulfilled its regulatory requirements under the Competition Act and has now completed the acquisition of substantially all of the assets of UNIS LUMIN, one of Canada's most highly regarded Cisco networking and managed services companies. Softchoice was represented by martinwolf | M&A Advisors. The acquisition strengthens Softchoice's professional services capabilities while providing the technology foundation to support the Company's future cloud offerings.

Please click here to view the announcement.   

 

September 30, 2011

SPS, a leading Unified Communications Provider, announced that Court Square Partners has made an investment in the company. martinwolf advised SPS in this transaction. SPS is a premier unified communication services integrator, ranked 131 on the 2011 VAR 500 list with 2010 sales of $143 million. Court Square is a $4B+ New York-based PE Group, with more than 150 lifetime investments.  

Please click here to view the announcement. 

      

September 20, 2011  

Accel-KKR, a technology-focused private equity investment firm, announced that it had taken a majority stake in Infinisource. Infinisource is a leading benefits administration technology and services company. martinwolf advised the seller in this transaction.  

Please click here to read more.  

 

 

martinwolf | M&A Advisors 2012    

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- Steve Ballmer,
CEO of Microsoft