Google Acquires Motorola: How Does it Affect RIM?

Google's $12.5 billion acquisition of Motorola Mobility had wide-ranging impacts on Monday, notably on technology stocks. Motorola Mobility (NYSE:MMI), Nokia (NYSE:NOK), and Research in Motion (NYSE:RIMM) all saw big stock price jumps during Monday's trading.

Part of the price bump, especially for Nokia and RIM, was growing speculation that Microsoft might be interested in purchasing a phone manufacturer in order to compete with Apple and Google.

One of the most interesting points of speculation is that Microsoft, or some other technology company, could be interested in purchasing RIM.

RIM has endured its fair share of troubles this past year. Its BlackBerry smartphone line has seen its market share drop significantly, it was recently forced to slash 2,000 jobs, and just last week Sprint announced it was dropping the PlayBook 4 G tablet.

Does that make it a potential acquisition target?

Not likely, says one analyst.

Citigroup analyst Jim Suva wrote in a note it was "not likely at this time," for RIM to be acquired, in part due to the company's resistance to an acquisition and its investment in its QNX technology.

RIM has put a lot of time and money into its QNX-based line of BlackBerry phones that it'd likely be resistant to selling out now.

Another potential roadblock for a RIM acquisition is the price that it would take to purchase the company.

RIM would likely be much more expensive than Motorola if it were to ever be acquired. Motorola was valued at approximately $7.3 billion before Google acquired it for $12.5 billion.

After seeing its stock shoot up 10.3 percent on Monday, RIM ended the day with a market cap of $14.12 billion. It's unknown whether companies would be willing to undertake such a big company, especially now that Apple and Google, two companies with the most cash on hand, already have divisions to manufacture phones.

The market for a potential acquisition partner for RIM has also diminished with Google's purchase of Motorola, as Microsoft is the last big-time operating system owner on the market.

So although RIM likely won't complain for getting a nice stock price bump from investor speculation -- don't bank on the company being acquired anytime soon.