April 12, 2010
Palm Putting Itself Up For Sell
Bloomberg reports that smartphone maker Palm Inc. is planning to sell itself and is now looking for offers for the company as early as this week.
Palm, the creator of the Pre and Pixi phones and developer of WebOS phone software, said it is working with Goldman Sachs Group and Qatalyst Partners to find a buyer.
Taiwan's Economic Daily News said that HTC Corp, the world's No. 5 smartphone maker, has "opened discussions about an intent to acquire" Palm.
Jon Rubinstein, Palm's chief executive, acknowledged last month that the firm's performance had been "very disappointing" after a net loss of $18.5 million for the three months to February.
Palm has struggled in recent years to find the marketing punch needed to compete against bigger players like Apple and Research in Motion. Experts believe that U.S. mobile phone partners failed to push Palm products to the public, despite decent reviews in the technology press.
"The problem is they just don't have enough in the way of resources," said Charles Wolf, a technology analyst at stockbroker Needham & Co. "It's unfortunate because the company has reasonably good products."
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