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Optical/IP

Palm Deal in the Final Stretch

A Palm Inc. buyout could be finalized by Thursday this week, demanding $20 or more per share, according to sources close to the situation. Nokia Corp. (NYSE: NOK) is seen as the leading vendor bidder; while Palm's management is said to prefer a private equity buyer.

Morgan Stanley -- the banker that the PDA pioneer has been working with to explore its options -- wants to wrap a deal by the 22nd, the day that Palm is due to report its third quarter results for its 2007 fiscal year, according to the latest word from sources.

"They really want to get it closed on the 22nd," a source told Unstrung on Monday morning.

Get the rest of the story on Unstrung.

— Dan Jones, Site Editor, Unstrung

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jackhitrov 12/5/2012 | 3:12:05 PM
re: Palm Deal in the Final Stretch Of course it will be sold. He need money for Numenta.

Jeff HawkinsGÇÖs Advisor

http://thedialogs.org/2007/03/...
twill009 12/5/2012 | 3:12:03 PM
re: Palm Deal in the Final Stretch This is very hard to believe. PALM is the answer to Motorola's problems? Nokia is missing out on that fraction of a percent of market share that Palm has?
Palm doesn't even own the OS.

The Dell angle with Ron G. as the prime mover is more credible, but doesn't seem to be the current 'story'.

One other thing: the story suggests that Palm wants to get a deal done in time for its earnings release. Presuming that to be true, that probably means the earnings are a disaster. What is the buyer's motivation for closing the deal before the earnings report? Let Palm splatter the windshield and then pick up the pieces, if that's what you want.

Something smells fishy.
hitekeng 12/5/2012 | 3:12:02 PM
re: Palm Deal in the Final Stretch Palm actually bought back PALM-OS license sharing rights from ACCESS recently for $44M (which was equivalent to Royalties after ACCESS defaulted on rollout deadline for the latest PALM-OS release).
So why MOTO is back in the running???
Well MOTO acquired Symbol earlier and recently "srategically KILLED" its Palm-OS hand-held's...
http://www.lightreading.com/bo...
http://www.lightreading.com/bo...
So MOTO is going after all those Palm-OS powered customers.....
twill009 12/5/2012 | 3:11:59 PM
re: Palm Deal in the Final Stretch Palm has the rights to use but is not the developer of the OS -- there is no reason why MOT or anybody else couldn't go directly to Access if they wanted to. But why would they want to? Even Palm is selling Windows Mobile OS handsets these days. MOT is already doing that on its own.

Palm is expected to ship between 600-700k units this quarter, MOT somewhere in the 50-60 million range and Nokia close to 100 million. Palm is a rounding error to these guys, and buying them would be a distraction -- especially for MOT, which needs to focus now more than ever.

I dunno...just doesn't make sense to me.
hitekeng 12/5/2012 | 3:11:56 PM
re: Palm Deal in the Final Stretch Palm bought back a perpetual license allowing it to develop the code...
http://www.macworld.com/news/2...
twill009 12/5/2012 | 3:11:54 PM
re: Palm Deal in the Final Stretch Hmmm, so MOT or somebody else is going to pay a couple of billion to buy PALM when they can license the code from Access for a few ten's of millions -- at most? Makes no sense.
I can completely understand why Palm is shopping itself around and is eager to get a deal done before its earnings report. Why somebody would buy it is another question altogether. If Zander at MOT actually does buy it, i think he will find he has a major shareholder revolt on his hands.
light_geeking 12/5/2012 | 3:11:54 PM
re: Palm Deal in the Final Stretch Palm is operating in the sector with bigger sized players. That in itself is not a bad thing but any misstep by such small players in the company of big boys can be quite costly.

On tracking the Palm history, one could see the missteps, either self-inflicted or accidental. For example:
1. loss of original Palm desigers who left to start their own company
2. Palm failing to come up with co-herent strategy (e.g. buying of China Mobilesoft, selling out their OS to Access Limited, lack of aggressiveness to pursue lots of app developers, etc.)
3. Other (fill in your favorite thought)

Well no point in dwelling on past other than it helps to understand the current circumstance Palm finds itself in. So the current set of suitors named and their motivations are as follows:

1. NOK (interest in Palm is to shut out Micrsoft from gaining momentum in the smartphone market).
2. DELL (is interested as it is a classic HW and Microsoft OS shop, so Palm fits well on both those lines).
3. MOT (is interested in killing a competitor, so that the overall piece of the addressable market pie increases for it and others. Alternatively, it could continue the Palm line as it could give them product diversification).
4. Private Equity Group (is interested in buying the weakened company like Palm that has good brand recognition and good products, and then most likely sell the company out to some HW manufacturers in China/Taiwan/Japan/etc. or bring it back as a public IPO after appropriate repositioning).

-lg
light_geeking 12/5/2012 | 3:11:53 PM
re: Palm Deal in the Final Stretch Flam you must work for MSFT or some NOK competitor. Please provide your source of "Nok thinks Symbian is lously". In fact, Symbian is lightyears ahead of all other mobile OSs. Does Symbian have room to improve? sure. Anyone who thinks they have the perfect solution is kidding themselves.
flam 12/5/2012 | 3:11:53 PM
re: Palm Deal in the Final Stretch NOK:

I've heard that Nokia believes that Symbian is a really lousy OS, and it needs to be replaced.

DELL:

Are you freaking kidding me?

MOT:

Would not be interested in killing Palm, but once the acquisition took place, the net result would probably be the same.

Private equity: the most likely scenario.
Gabriel Brown 12/5/2012 | 3:11:52 PM
re: Palm Deal in the Final Stretch IsnGÇÖt the point about Palm that itGÇÖs an amazing brand loved by corporate America?

Surely thatGÇÖs as important as what OS it runs.
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