Research In Motion: Could It Be Takeover Bait For Cisco?

Here’s a wild thought: Could Research In Motion (RIMM) be acquired by Cisco Systems (CSCO)?

That idea comes this morning from UBS analyst Maynard Um, who concedes that such a combination is a long shot, but nonetheless thinks it makes a lot more sense than the oft-floated concept of Microsoft (MSFT) buying RIMM, a combination he finds highly unlikely. “At the right valuation, we believe RIMM would be an attractive M&A candidate with Cisco,” he writes.

Here’s this thinking on a possible combination:

• “Cisco can integrate many of its technologies from its Flip (digital camera) acquisition. In addition to integrating its proprietary video processing technology and digital image stabilization into BlackBerries, we believe the company can also integrate its video editing software into RIM�s desktop manager with hooks into Facebook, Twitter, et. al. to offer a more compelling multimedia offering,” he says.
• Cisco could add from-facing cameras to the BlackBerry and offer it as part of its consumer and enterprise telepresence offerings.
• Cisco could leverage RIMM’s mobile voice system.
• Cisco could use some of its $33 billion in offshore cash to buy Canada-based RIMM without paying U.S. taxes to repatriate the cash.

RIMM this morning is up 27 cents, or 0.6%, to $47.57.