Palm Inc, the loss-making Smartphone maker, is looking to sell itself and is seeking bids for the company, according to sources. Palm, which makes the Pre and Pixi phones and develops WebOS phone software, is working with Goldman Sachs Group Inc and Qatalyst Partners to find a buyer.
Commenting on it CCS Insight analyst Geoff Blaber said, “Palm’s limited scale, distribution and weak global brand outside the United States all point to a takeover as the next chapter in the Palm story. The company has developed a highly valuable asset in webOS. The challenge for Palm is finding a buyer prepared to pay a premium for an immature platform when many potential suitors have already invested heavily in Android,” Blaber said. Taiwan’s Economic Daily News reported that HTC Corp (2498.TW), the world’s No. 5 Smartphone maker has plans to acquire Palm. Earlier technology companies like Nokia, Dell, Motorola and Microsoft Corp have been named as potential suitors. Palm has for years been mentioned as a probable takeover target for much larger companies such as Lenovo Group also hoping to enter the mobile market or expand their presence.
Palm, which has a market value of $870.8 million, could help its new owner compete with North American Smartphone providers Apple Inc., maker of the iPhone, and Research In Motion Ltd., which sells the BlackBerry. Palm’s devices also compete with phones running Google’s Android software, and its patent holdings span mobile hardware, software and power saving technologies. A spokesman for Palm in Europe declined to comment on the situation.
Tags: android, economic daily news, goldman sachs group, google, Iphone, microsoft corp, mobile market, palm inc, research in motion ltd, scale distribution, suitors, takeover target