Palm Attempted to Buy PalmSource
BusinessWeek is reporting that Palm put a bid in to buy PalmSource. However, Palm was outbid by other companies and ultimately decided that the deal didn't make sense.
According to the article, major U.S. and European handset makers jumped into the bidding for PalmSource and drove the price too high.
Palm CEO Ed Colligan stated "There was a point beyond which we didn't think it made sense," in an email to Palm employees.
Japanese mobile software company ACCESS agreed to acquire PalmSource for $324 million dollars. The sale was at an 83% premium based on the market closing price of $10.09 on September 8, 2005.
ACCESS plans to make PalmSource a wholly owned subsidiary. PalmSource will continue to support Palm OS Garnet and will work on finishing its next generation Palm OS for Linux products.
The article also states that for Palm, Access deal is the least objectionable outcome, since it prevented Palm OS from falling into the hands of a competitor. It also talks about how a Windows Mobile Treo is due early next year.
Thanks to Gaurav and Pat Horne for the tip.
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