HTC and Lenovo linked to Palm takeover - Mobile World Live

HTC and Lenovo linked to Palm takeover

21 APR 2010

Smartphone vendor Palm is looking to sell itself and has attracted interest from HTC and Lenovo, according to a Bloomberg report. The news agency claims that Palm is working with Goldman Sachs Group and Qatalyst Partners to find a buyer and is seeking bids for the company as early as this week. Dell has reportedly decided against an offer, whilst China’s Huawei and ZTE are regarded by analysts as potential suitors. Such speculation has caused Palm’s shares to jump 32 percent in the past few days on renewed speculation of a takeover bid. The fate of Palm has been a hot industry topic in recent months, with Nokia recently considered a likely purchaser.

Last year Palm attempted to revive flagging fortunes with the launch of its webOS smartphone operating system and the high-profile Pre and Pixi devices. Despite very positive reviews of both the software and hardware, sales have been disappointing, and the vendor reported a dire set of fiscal third quarter financials. At the time of the results, CEO Jon Rubinstein declined to comment on the possibility of the company being acquired, beyond saying the board would look at any “reasonable offer.” Only last week he told Fortune magazine he was confident the company could turn things around and said market chatter around Palm going out of business “defies logic.”

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