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As we headed into Labor Day weekend, rumors started to heat up regarding a Microsoft takeover of Research In Motion. Apparently, Microsoft is feeling the pressure of Google’s entry into the mobile phone world, and as a competitor, Microsoft feels the necessity to keep pace. So as we were slogging through the afternoon grind with thoughts of beaches running through our minds, we were greeted with a bit of speculation. This kept the news flowing, holiday or not.

Owners of Research In Motion’s stock did well upon hearing the news, though they would have done well to get out quickly. Why? Because, well, it’s probably not going to happen. While it’s a Wall Street junkie’s dream to see a merger of such gravity, it remains nothing more than a pipe dream. Microsoft would be making an enormous investment — up to $50 billion — to acquire a company with which it would have to tinker to make compatible with its own line of products.

Think about it: the BlackBerry has a unique operating system, proprietary to Research In Motion. Microsoft made its name on operating systems, and even has its own mobile version. Here’s what Microsoft could do:

1) Switch all BlackBerries to Windows Mobile OS. That would, of course, cause a mutiny. BlackBerry users tend to love the OS, and to change it to a Windows Mobile platform would take away the uniqueness. We know we’d drop it immediately, on principle alone.

2) Just keep on using the BlackBerry OS. But then what would be the point in acquiring the company? Remember, Microsoft would be doing this to establish itself in the mobile world. Keeping the old OS would seem counterproductive in that case.

3) Develop a new OS that would combine the old BlackBerry one with new Microsoft innovations. Except that would take years, and by that time Google could have built a wireless empire.

As you can see, there is very little sense in such a merger. It’s nice to think about, but it certainly doesn’t seem in Microsoft’s best interest. And if it isn’t, then they won’t be bidding.

[PC Pro] [Seeking Alpha]

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