RIM settlement with NTP causes stock jump

BlackBerry users can breathe a sigh of relief, NTP and RIM have reached a settlement agreement and the dispute should almost be over. RIM has agreed to pay NTP $612.5 million to end the fight. According to RIM the settlement has been approved by the courts. That is particularly important since the earlier $450 million settlement between the companies was rejected by the judge in the case.

The size of the settlement is not so big that it cripples RIM. Indeed, shareholders are very optimistic about what the deal means. Shares in RIM jumped up in value by 14% in early trading on Monday, the first trading day after the deal was reached. The settlement and the end of the uncertainty comes at a very important time for the company as it frees them to concentrate on their very competitive sector. Microsoft in particular is getting increasingly aggressive in their efforts to steal market share from the industry leading BlackBerry.

Posted in: Uncategorized

Leave a Comment