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Nokia & Motorola in frame for Palm buyout?

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Posted at 9:23am by

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Finnish manufacturer Nokia or US firm Motorola are among the most suitable candidates for a takeover of ailing smartphone manufacturer Palm, according to analysts from Morgan Stanley.

Mergers and acquisitions experts from the investment bank also believe that both Research in Motion (RIM) and HTC could benefit strategically from ownership of Palm.

News of their prognosis comes after stories broke earlier this week that Palm is looking for a buyer, which sent shares in the company soaring.

Morgan Stanley's report stated: "We believe the potential ownership of WebOS would create a more defendable and viable long-term mobile devices business for Motorola."

If Nokia were to pick up Palm, it could add the webOS platform along with Symbian, Meamo and MeeGo to the list of smartphone operating systems in which it has a controlling interest.

Meanwhile, RIM could get its hands on Palm's portfolio of patents, allowing it to diversity its range in the USA.

Various spokespeople for the firms named in the report have declined to make any clear statements as to their positions at this stage.

More news on: Nokia, Business, Motorola, Palm

3 Comments

  • Owen, 16th April 2010.

    Who knew Palm would be so in demand? Anyone want to buy a slightly soiled mobile phone company (slightly soiled, one careful owner)?

    Reply
  • Less The Best, 16th April 2010.

    "If Nokia were to pick up Palm, it could add the webOS platform along with Symbian, Meamo and MeeGo to the list of smartphone operating systems in which it has a controlling interest."

    This is terrible. If Morgan Stanley ever hinted anything like this, it shows that they don't understand the business at all. First Maemo and Meego are the "same". Second Nokia doesn't want to own OSs. They want to have necessary OSs: S40 for feature phones, Symbian for smartphones and Meego for mobile computers. Nokia's OS portfolio is filled WebOS doesn't fit in there.

    The ultimate keys to Nokia's OS strategy are Web Runtime and Qt which knit Symbian and Meego together. Especially Qt. Does Web OS support them? No. It means that Nokia would have to build support for WebOS. Nokia has already spent a lot of time building support for their existing OSs. Why would they want to do the work one more time? What it does offer that Symbian can't? Don't tell me about slick UI. You could do that with new Symbian. And with lot less effort.

    Everybody is praising the web OS but how versatile is it? How many screen sizes, processors etc does it support? These are important things for the world's biggest mobile device manufacturer.

    I think you got my point: idea of Nokia buying Palm is ridiculous.

    Reply
  • Zamin, 17th April 2010.

    It is great company with huge potential. The buyout will happen. They got almost $600m cash. Operating loss of over $800 million that benefits whoever buys them (taxwise). Plus an awesome webOS operating system. Buyout @10 per share

    Reply

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