Comments on: IRS Rules Palm's Distro of PalmSource Tax-Free

Palm, Inc. today announced that it received a ruling from the Internal Revenue Service that a proposed distribution of shares of PalmSource, Inc., Palm's majority-owned operating-system software business subsidiary, will be tax-free to Palm, Inc. and its United States shareholders for U.S. federal income tax purposes. This is another key step in the final separation of Palm Inc and PalmSource.

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How long will PalmSource remain independent?

gfunkmagic @ 1/6/2003 4:45:39 PM #

Well Sony already has 6% of shares, I truely doubt whether PalmSource can remain independent as a such a small company for too long. The ony thing the prevented the previous whole "Palm" from becmoing a take-ever target was the tax implications following its spin-off from 3com. That having been lifted apparently, it will be interesting to see how long Palmsource survives as an independent firm...

The 2003 National Championship WAS ROBBED!!! Terry Porter, you suck you freakin REF! OSU STOLE the Chanpionship, period!!

RE: How long will PalmSource remain independent?

xtremist5150 @ 1/6/2003 4:56:42 PM #

I don't know, I think PalmSource stands a good chance of carving its own niche, especially now that it's not tied to any hardware-specific platform. I have a feeling that we'll start seeing some good things coming from them later on this year. (fingers crossed while performing a voodoo dance)

RE: How long will PalmSource remain independent?

mtt @ 1/7/2003 12:52:20 PM #

There is no reason why PalmSource couldn't remain independent indefinitly... it would be an interesting situation for huge Sony, etc. licensing from a tiny Palmsource, but as long as they could pay their own bills, they wouldn't have to sell out. They probably couln't afford to defend themselves in court if a large company started infringing on their contracts though...

Miami Hurricanes- the true national champions

MTT

RE: How long will PalmSource remain independent?

enjolras @ 1/7/2003 5:38:35 PM #

Particularly with all of it's licensees..

And yes, there was plenty of pass interference calls blown in that game. Look at the 3rd down player on OSU's last possession of the 4th quarter. The Miami kid held the receiver in every direction... It should have never even GONE to overtime.

RE: How long will PalmSource remain independent?

KRamsauer @ 1/7/2003 7:25:15 PM #

Just because this distribution is tax free doesn't mean a future purchase will be. A better term for it would be "tax postponed" in that the transaction will not trigger capital gains right now, but rather pushes them (if there are any) into the future. I don't know the tax basis so I can't really comment on how big the gain is.

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