According to a report from Reuters, HTC is no longer in the running to buyout Palm, this comes from “a source with direct knowledge of the situation after reviewing Palm’s books“. The source went on to say, “there just weren’t enough synergies to take the deal forward”. Dreams of an HTC EVO 4G with webOS have been dashed and now Lenovo has emerged as the leading candidate. Lu Chialin, an analyst for Macquarie Securities in Tapaei believes “a suitable candidate will be a mainland Chinese company“. Chialin cites free cash and the lack of a brand presence in the US are contributing factors. Lenovo is currently the world’s 4th largest PC maker.
Not all analysts are bullish when it comes to Palm being a good match for Lenovo.
“It’s not a good idea for Lenovo to buy Palm right now,” said Vincent Chen, an analyst at Yuanta Securities. “If it does, it’s got to be prepared to take on some of Palm’s losses and may have to see at least a few more quarters of losses from them.”
HTC is not the only company to take a pass. Huawei were also rumored to be interested and also declined to put in a bid.