Reports are that Research in Motion has turned down a takeover offer from Amazon.com. The troubled smartphone maker is up for sale, according to an insider, and Microsoft and Nokia are potential buyers.

“This story puts RIM in play, because shareholders are going to put it in play,” said an investor. “It’s over. This is now a company where the activists are in charge.”

RIM’s market value has dropped 77 percent in the past year to the point where it’s now below its “book value” of assets. This has followed a series of disappointing quarterly reports, delayed phone launches, weak sales of the PlayBook tablet, a nearly 48 hour outage of service around the globe and other missteps.

The shares took another hit after weaker-than-expected quarterly results, where profits were down 70 percent, followed by the announced delay in the launch of the new BlackBerry 10 phones until late 2012.

While partnerships with Nokia and Microsoft seems likely, an outright sale might not be a panacea. “They have had approaches from folks who have wanted to have discussions,” said one head of technology investment banking at a Wall Street bank. “The issue is it is hard to find a value that makes sense with a falling knife.”

After the bad financial announcement, reports are that the board instructed the co-CEOs to set aside any options for a sale, one person briefed on the situation said, “Selling the company or an economic joint venture is probably not in the cards right now,” the source said. “Until you stabilize the platform, people are going to be very nervous about spending $10bn or more.”

Additionally, it was reported that RIM approached Samsung and HTC about licensing its forthcoming handset operating system, due late in 2012. However, RIM is unlike to abandon its handset business.

Source: The Guardian