Palm Takeover Expected This Week

[Mike Temporale]

http://www.informationweek.com/news/showArticle.jhtml?articleID=198100102

"Palm Inc. PALM.O could be sold for at least $20 per share this week and at least four bidders are interested, including private equity firm Texas Pacific Group, according to unnamed sources cited by technology news Web site Unstrung.com. Texas Pacific declined to comment. A spokeswoman for Sunnyvale, California-based Palm, which makes the Treo smartphone, was not immediately available. Sources have previously told Reuters that Palm hired Morgan Stanley to pursue a buyer."

It seems like most people are expecting Nokia to grab Palm. I'm not sure that I agree with that. Nokia doesn't need anything that Palm has to offer, which is nothing more than a name brand and a dated piece of hardware. I think it's far more likely that Motorola or Samsung will jump on it. After all, both of those guys are trying really hard to gain some more market share, which is about the only other things Palm has to offer. What do you think?

[Mike Temporale]

http://www.informationweek.com/news/showArticle.jhtml?articleID=198100102

"Palm Inc. PALM.O could be sold for at least $20 per share this week and at least four bidders are interested, including private equity firm Texas Pacific Group, according to unnamed sources cited by technology news Web site Unstrung.com. Texas Pacific declined to comment. A spokeswoman for Sunnyvale, California-based Palm, which makes the Treo smartphone, was not immediately available. Sources have previously told Reuters that Palm hired Morgan Stanley to pursue a buyer."

It seems like most people are expecting Nokia to grab Palm. I'm not sure that I agree with that. Nokia doesn't need anything that Palm has to offer, which is nothing more than a name brand and a dated piece of hardware. I think it's far more likely that Motorola or Samsung will jump on it. After all, both of those guys are trying really hard to gain some more market share, which is about the only other things Palm has to offer. What do you think?

[alese]

I'd bet on Motorola.

I doubt Nokia has anything to gain from getting Palm, except maybe access to Windows Mobile, but I guess they can get this cheaper by simply signing a deal with Microsoft.

[Kris Kumar]

Originally Posted by alese

I doubt Nokia has anything to gain from getting Palm, except maybe access to Windows Mobile, but I guess they can get this cheaper by simply signing a deal with Microsoft.

If they buy Palm they don't have to do any engineering or development work. They get the hardware and the matching software. R&D for a new product development is high. Sustaining an existing product is easier. ;-)

[Jerry Raia]

I'll go with Motorola, they don't make enough junky phones yet. :lol:

[subzerohf]

Pretty sure it won't be BENQ... :wink:

[Mike Temporale]

Originally Posted by Kris Kumar

If they buy Palm they don't have to do any engineering or development work. They get the hardware and the matching software. R&D for a new product development is high. Sustaining an existing product is easier. ;-)

Right, but we're talking about an outdated product that hasn't seen any updates - truely, in a long time. So there's no value left in R&D or engineering.

[Kris Kumar]

I thought Nokia was a bit weak in the States and especially in the enterprise market. Palm acquistion gets them a reputable brand name.

I don't think the market understands that it is outdated, it is the name. Nokia can always improve upon it.