Latest Round of Palm is for Sale Rumors
Amidst mounting speculation of a looming Palm sale, there has also been quite a bit of chatter focusing on Dell’s recent elimination of the Axim PDA line. Now reports are swirling that Dell wants to enter the lucrative smartphone market. Dell has recently hired Ron Garriques, formerly the head of mobile devices at Motorola, to spearhead new efforts in consumer products. Linked to these recent rumblings is a new rumor that the cash-rich Dell could be a possible suitor for Palm. Acquiring Palm would give Dell immediate access to Palm’s existing wireless carrier contracts worldwide, a solid retail distribution channel and a decade-old brand (“Palm”) along with the newer, arguably more recognizable “Treo” branding.
Possibly spawning directly from the above rumors, as this article in The Independent claims, Palm executives have supposedly seen the writing on the wall brought about by the announcement of the Apple iPhone and are looking to unload the company prior to the iPhone’s June launch. Morgan Stanley is reportedly assisting Palm to assess the company’s options while a buyer is sought. The article also goes on to claim Palm has a current market capitalization of approximately USD $2 billion. The usual list of suspects (Nokia and a private-equity firm) is again mentioned concurrently with Palm seeking a buyer. As usual, Palm has refused comment, aside from the recent interview comments by Hawkins that there isn't a shred of fact to these sorts of Wall Street rumors.