Analyst: RIM sell-off could be more trouble than it's worth

With speculation continuing to mount over RIM's ability to continue operating, analysts have cast doubt over whether the company could attract buyers in the event of a sale.

The launch of the BB10 operating system is widely seen as the last chance for the BlackBerry brand to re-establish itself among the smartphone elite, before RIM decides if it should sell or break up the company.

However, even if RIM decided to shift all or part of itself, potential buyers might not be too enthralled by the prospect of taking on a myriad of problems, according to Credit Suisse analyst Kulbinder Garcha.

Garcha said that even the most resourceful buyer may struggle to turn RIM, which is currently engaging in wholesale job cuts amid falling sales and floundering share prices, into a winner once again.

High effort for little reward?

"Any deal for [the] company is highly complex in our view, requiring simultaneous management of a declining business, as well significant restructuring, and as such an acquirer maybe be best advised to wait for [the company] to shrink meaningfully before making any potential move," Garcha wrote in a note to investors.

"A break up is possible," he added.

"[But] we question the quality of the underlying patent portfolio and also believe that converting RIM's existing network operations center for other OS platforms may require a high level of effort for minimal functionality improvement."

Garcha noted that BB10 may come too late to re-engage the dwindling BlackBerry user base and added that RIM's market share may drop as low as 2.5 per cent next year, further denting any sell-on value.

In a call-in with investors last Thursday, RIM revealed its built a revenue of $2.9 billion (UK £1.78, AU $2.78) this past fiscal quarter, up from $2.8 billion (UK £1.72, AU $2.68) during the previous quarter.

However, this figure is 31 per cent below what the company brought home during the same quarter last year, when that number landed at $4.2 billion (UK £2.58, AU $4.03).

TechRadar has reached out for a second opinion from the financial community and will update this story if and when we receive further analysis.

Do you there's still a chance that RIM can turn things around with BB10? Let us know your thoughts in the comments section below.