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New rumor has HTC buying Palm

updated 12:20 pm EDT, Fri April 9, 2010

Palm gets another purported buyer

Palm saw its shares spike on Friday after another Taiwan rumor of a potential buyer. Local publication UDN claimed that HTC has been deep in talks to possibly buy the American company and has seen its CEO, Peter Chou, spend just five days in his native Taiwan over the past three weeks.

The move would be possible through Palm's financial woes, which through continued losses has been reduced to under a tenth of HTC's value, or $779 million.

Neither company would either confirm or deny the rumor, although Palm chief Jon Rubinstein has previously said in fiscal results calls that his company would be open to being bought out if it receives a meaningful offer.

The rumor follows just days after one of a possible Lenovo deal but would be an even greater upheaval of the smartphone market. HTC has a much larger presence in smartphones and has been one of the key supporters of both Android and Windows Mobile. Acquiring Palm would give it an in-house mobile OS of its own and could significantly raise the standing of webOS, which has dropped in market share as Android has lured customers away.

It would also potentially give HTC Palm's technology patents and its techniques for using multi-touch, which could mitigate the results of the ongoing Apple lawsuit.




by MacNN Staff

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Comments

  1. WiseWeasel

    Joined: Dec 1969

    +2

    Woot

    I knew $4/share was too good to pass up.

  1. thebiggfrogg

    Joined: Dec 1969

    -3

    gurgle, chock, sputter

    plorp--ZOINKS!!!

  1. qazwart

    Joined: Dec 1969

    +3

    HTC?

    Lenovo makes sense. They get a mobile OS and two already certified FCC phones that have garnered praise in the tech community. Since Lenovo doesn't already have a platform or a commitment to another OS, that could help them get into the game.

    But what does HTC get out of the deal? They get a piece of hardware manufactured by someone else, and another OS they have to maintain.

    They could be upset with Android and Google, many manufacturers are, but they've been one of the blessed manufacturers with Google. Google has worked with them at least twice on getting Android to work with their handsets and has given HTC a competitive advantage in the market.

    So, they get handset manufactured by a competitor and an OS they don't need. Lenovo sounds much more plausible.

  1. WiseWeasel

    Joined: Dec 1969

    +8

    Re: HTC?

    They get a mobile OS that's actually designed well, and a boatload of patents.

  1. peter02l

    Joined: Dec 1969

    +2

    Pete

    Sure, I suppose US firms are experts in offloading failing businesses on Asian firms. Why wouldn't Motorola, Microsoft, RIM, or Nokia be interested?

    HTC would be stupid to spend $700- $800 million to defend a lawsuit. As for phones, it costs HTC nothing for Android OS, why would the be interested in having an in-house OS so that they can compete against themselves? Palm is not worth anything more than $7 - $8 million with all their debt and all the employees who will leave the company anyway.

  1. minimansion

    Joined: Dec 1969

    +1

    This is not good for Apple...

    Palm holds several older patents that may or may not be enforced if HTC was to purchase the company. Looks to possibly be a defensive maneuver by HTC.

  1. minimansion

    Joined: Dec 1969

    -1

    Apple should buy Palm...

    for the patent portfolio if nothing else....

  1. Fast iBook

    Joined: Dec 1969

    -2

    Apple is......

    Apple is about to shut HTC down, and HTC wants to buy palm, i say let HTC buy palm, then have apple's job be just that much easier.

    - A

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