RIM sells NewBay for $55 million

Ian Hardy

December 27, 2012 8:03 pm


Last October RIM paid about $100 million for NewBay Software. A company that has several contracts with carriers and offers a white label branded cloud services platform called LifeCache, which allows their customers to safely store and share pictures, videos and other media.

It’s not known why RIM purchased NewBay, perhaps to compete with Apple, Microsoft, Google and all the cloud services out there. However, today it was announced that Synchronoss Technologies has acquired NewBay for a fraction of RIM’s purchase price at $55 million. According to the press release “NewBay’s cloud services are delivered to millions of user and stores billions of media files for live operator services around the world. In consideration for the acquisition, Synchronoss paid $55.5 million in cash to Research in Motion Limited, and there was no assumption of cash or debt. The transaction closed at the end of the fourth quarter of 2012.”

So this sale could mean that RIM is completely out of the cloud storage game. In BlackBerry 10 demos and screenshots it seemed that both Box and Dropbox cloud services will be available at launch. No word on how much storage will be included.

Source: NewBay
Via: CrackBerry

  • Terry

    Makes sense. Why bother competing with a service when third parties do it better.

  • Dan Brook

    Despite the loss in investment, I am very happy about this move. Blackberry Bridge was the most exciting feature of the Playbook, and still is. Avoiding data redundancies and a very clever use of “existing” data on bigger screens was a phenomenal conceptual and technical achievment (not speaking to marketing or customer absorbtion of the feature). I hope this suggest (I know it doesn’t confirm) that they are going to continue with Tablets and are going to extend Bridge support for exisitng Playbook users and “soon to be” BB 10 device owners. The only advantage of operating with a cloud-based service provider is that your ‘data’ is available from multiple platforms. On the other hand, this could suggest that they are NOT going to extend into the tablet market any further, beyond the existing playbooks; that it will be BB10 smartphones all the way!

    • Asteriod

      Too long, didn’t read.

    • Useless Aquisitions

      RIM bought so many useless “companies” when it was in its prime. The most hilarous one was some place called Tungle. That company had been around for years and throughout its entire existence, it never made a single cent. It’s total revenue was $0.00.

      Someone working at Tim Hortons for half an hour would make more money than Tungle made throughout its entire existence. LOL. Then RIM goes and buys it. What a waste of money. All they did was beg people for loans. How many other acquisitions did RIM waste money and effort on?

    • Slappy

      @Useless Aquisitions Perhaps they were buying patents.

  • GENERAL WONG

    Too late man. That sack of s-h-i-t 2cf beat you to the first post. He is also a troll on howardforums. Just ignore him.

  • rip

    rim

  • Pukka

    For anyone that thinks RIM is going under they haven’t played with the new blackberries they are launching. Not only is the operating system perfected but the app ecosystem is fairly mature at this point even before the launch. RIM will make a huge come back in the next year. Buy your shares now.

    • jplunks

      Windows Phone 7/8 is just are new/silky smooth/different all you wanna call it, but they had to fight to come in, be reconized of a serious OS to compete with iOS and Android. Does RIM have that same power and stamina to go a few rounds and get back up? The real test is when it launchs

    • stock buyer

      Oh so I should buy shares right now? Can you please let me know!? I want to be rich. Is your advice foolproof?

      THanks.

    • John

      I have. Nothing impressive. On par with my Galaxy S2.

  • 2c

    RIP RIM!!!!! :D :D

  • Resonance

    That’s more than $45 million loss for RIM.

    • John

      More profitable than their hardware.

  • mjolnir

    One advantage of RIM over competitors are their in-house messenger and security measures that attracts the enterprise sector dearly; expanding to cloud storage is the next frontier and logical since the competition in the enterprise market is still new. Pulling out of it is a big mistake especially along with a $45 million loss.

    • Luc

      Who says RIM didn’t take something it needed out of the company between the time it purchased it and the time it sold it.. and that that “thing” wasn’t a bargain for 45 million? Maybe it was worth the entire 100+ million to them, and once they extracted it they could have disbanded newbay, but instead they saw an opertunity to actually make 55 million by selling off the rest of a company they didn’t need…

    • 2DFX

      You tell em’ Ruc.

    • STY

      @Luc , you may very well be right. And maybe the deal is for $55 million, but also allow RIM to use the services for Blackberry clients free, etc. Sometimes these deals have lots of “perks” underneath the surface.

  • chillwinston

    Ever think that something cloud based is already in place with the OS from QNX? With all the leaks I’m sure Rim is keeping somethings secret… or we’ll hear about it next week lol

  • Toto

    Gotta pay Nokia that ‘one time payment’, right?

  • Raid

    This was probably done to partially offset the $65 million payment to Nokia for licensing fees. Plus they got to unload a company which they no longer use. It’s a win-win situation.

  • fanberry10

    “On January 22, 2012 RIM announced that Co CEOs Jim Balsillie and Mike Lazaridis have stepped down as CEOs and announced the new CEO to be Thorsten Heins on January 23,2012.” I for one is looking forward to the new BB10 on January 30, 2013!

  • Reader

    Hope they took all the IP first and then sold the company…LOL.

  • stylinred

    rim sold it so that they could pay the penalty they owe Nokia