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Motorola may buy Palm to take on Apple

updated 03:35 pm EDT, Wed March 21, 2007

Motorola May Buy Palm

Motorola is the prime candidate for buying Palm, an anonymous investor in the Treo manufacturer said on Wednesday. The source claimed that Motorola was now leading the pack of four companies that had been previously been competing to buy Palm, and confirmed that the former could be ready to announce a $2 billion deal as soon as Thursday.

Although Nokia had reportedly been leading the bids in recent days, the shareholder said, both Motorola and Palm have realized that they both stand to gain from a merger by fending off major competitors, singling out Apple as Palm's greatest fear.

"Apple is about to walk away with the OS (operating system) market for handheld computers," the contact noted. "Microsoft has been successful because it's always owned the OS. In some ways, the iPhone from Apple is a trojan horse, a handheld computer running the Mac OS that's poised to take over the world."

By finalizing their union, Motorola and Palm would form the largest single Windows Mobile phone producer in the world and would offer a stronger alternative to smartphones based on other operating systems, especially Apple's iPhone and Nokia's E- and N- series phones based on Symbian.

The shareholder cautioned that Morgan Stanley, the bank negotiating the deal, had not finalized a deal and that the situation could change even in the day before the announcement. However, it was made clear that Motorola had every reason to be aggressive in its bid as it would quickly profit from taking over Palm's affairs.

"They could pay up to $25 a share and the deal would still be accretive," the investor said. "Accretive immediately." [via CNBC]

by MacNN Staff




  1. koolkid1976

    Joined: Dec 1969


    trojan horse

    iPhone is not the only OS X Trojan horse. AppleTV is as well. Can you imagine if the iPod's had OS X on them as well?

  1. Cadaver

    Joined: Dec 1969


    Apple should buy Palm

    Apple once wanted to buy Palm. It should do it now. Migrate all the Palm devices (Treo phones, PDAs) to the mini-MacOS X used by the iPhone and repurpose all Palm's intelectual propery and patents as necessary.

    Instead of Motorola + Palm [i]and[/i] Microsoft's Windows Mobile competing against Apple, the number of competitors could be cut down in one fell swoop.

  1. suhail

    Joined: Dec 1969



    Motorola is going to be x amount of years late delivering their products just like they were with the PowerPC processors.

    I'll be surprised to see Motorola being lean, innovative, and fast.

  1. jcatma61

    Joined: Dec 1969


    pffft is right

    Motorola could s**** up a one-car funeral. They have the A1200 (MotoMing) ready to roll out with Linux driving it! No kidding!

    Once again, a Motorola product that looks great but makes absolutely no sense when you take it out of the box and wonder what you just bought.

  1. brainiac_7

    Joined: Dec 1969


    Mr. Moto

    Was home for the holidays. 3 relatives w/ 3 Razrs. None could figure out the others' Razr interface, and each said they still had no clue how half of the features worked on their own phone. 2 out of 3 were computer-literate. Not a great score for Moto.

    I'll be trading my Treo for a rev B iPhone, Palm isn't the sexiest of OSes.

  1. Guest

    Joined: Dec 1969


    Palm is dying...

    Let Motorola buy Palm and then have that albatross around their neck. In no way shape or form should Apple consider buying Palm. Palm and Motorola would be good partners as they both tend to s**** up what would otherwise be good products...

  1. gskibum3

    Joined: Dec 1969



    ... doesn't require me to sign up with Cingular! Unless that requirement changes, I won't be owning any iPhones!

  1. Titanium Man

    Joined: Dec 1969


    Motorola is dying

    New York Times reported today:

    "Motorola Cuts Revenue Forecast by $1 Billion

    The business prospects of Motorola, the 80-year-old technology company, suddenly look as thin as the Razr, its iconic mobile phone.

    Today, the company significantly revised its earnings estimates for the first three months of the year, dropping its revenue projections by $1 billion for the quarter. The company also announced a management shake-up and an expanded stock-buyback program."

  1. Cf

    Joined: Dec 1969



    When the iPhone has useful medical apps then folks like me will look that way. Right now, my Palm TX is a powerhouse of information for the wards. We're a huge chunk of Palm's user base and we won't be happy if Motorola comes in and botches it up.

  1. whelkboy

    Joined: Dec 1969



    Are they seriously calling it a MotoMing? Conjures up images of Flash Gordon rather than a handheld device!

    I would call anything a Ming in the UK either!

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