If HP Buys RIM, Would It Nail The Lid On Both Companies’ Coffins?

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Hewlett-Packard Company (NYSE:HPQ) is struggling, by all accounts, as even the current CEO, Meg Whitman has been more than willing to admit. Whitman was hired by the company, specifically to turn it around, yet it has proven to be an uphill battle.

Hewlett-Packard Company (NYSE:HPQ) is struggling to compete in the PC market, which is quickly losing users to the mobile sector. Apple’s iPad, along with Google Inc (NASDAQ:GOOG)’s Nexus Tablet, and Amazon’s Kindle tablets, have quickly attracted large numbers of users, which has drastically decreased the number of desktop PC users. Microsoft Corporation (NASDAQ:MSFT) has finally begun making the transition to the mobile world, with its Surface Tablet computers, however Hewlett Packard has not been able to successfully make this transition.

If HP Buys RIM, Would It Nail The Lid On Both Companies' Coffins?

Meg Whitman is getting a lot of input from outside sources, some of which have suggested that Hewlett-Packard Company (NYSE:HPQ) purchase struggling BlackBerry smart phone maker, Research In Motion. The failing company has been bleeding profits for several quarters now. We featured them in an article earlier this week, in which research suggests that RIM’s options for survival are rapidly depleting.

Rocco Pendola, of The Street, believes that a buyout of Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM), by HP, is the only way that either of the companies can survive in today’s market. He said they “have one choice if they hope to survive.” According to Money.Msn.com, Apple and other large companies in the sector are devouring the two companies. The article suggests that HP should not only purchase Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM), but the newly joined company should also join forces with Dell Inc. (NASDAQ:DELL), which is yet another company that is struggling to survive in the languishing PC market.

Christopher Versace, of Forbes, believes that while RIM might help Hewlett-Packard Company (NYSE:HPQ) survive, Nokia Corporation (NYSE:NOK) would be a much better choice, in the event of a purchase. He says HP is thinking about, ” taking another stab at building a smart phone…and Android one.” He points out that HP gave up on its TouchPad and WebOS mobile units, and now they were considering RIM. He further notes that while RIM might work, BlackBerry phones have taken a major hit in the market of late. He believes Nokia would be a safer bet, as they have a larger market share.

While Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) must have a buyer, as Paul Shea reported here at ValueWalk, the chances of RIM being able to recoup its losses in the long term are more than a little dismal. Hewlett Packard’s CEO and board of directors is surely smart enough to know that RIM would be another nail in HP’s coffin. If the buyout happens, and HP does indeed sink, then Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) would also be buried in the rubble.

Both of these companies were one time giants in their respective fields, however, they now find themselves dwarfed by companies they once dominated. Apple Inc. (NASDAQ:AAPL) is currently dominating the mobile market, as its iPad tablets and iPhone smart phone line are holding strong shares in the market, along with Samsung. Meanwhile, Hewlett-Packard Company (NYSE:HPQ) and Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) must continue to try to keep their head above water long enough to find a long term solution to their problems.

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