Takeover Rumors Persist, Wheel Lands on HTC

Palm’s stock was on the rise again today, in a move similar to Tuesay, again based upon rumors of a possible takeover. This time, the rumors center around HTC. PreCentral points us to a translated article from Chinese Economic News.


Smartphone maker HTC is in talks with Palm on a possible acquisition, the Economic Daily said, citing market speculation, after foreign media reported that some other companies including China’s Lenovo had been named as potential suitors.

Linda Mills, a spokesperson for HTc, said the company does not comment on rumors, but added: “To the best of my knowledge this is just a rumor.”

Palm declined to comment.

Thanks Wil W

Palm Shares Rise, Analyst Suggests Takeover Possibility

Palm shares surged today on comments by Jonathon Goldberg, an analyst for Deutsche Bank. Goldberg raised his target price for the stock citing strong potential for webOS devices and a “takeover possibility“. From what’s been reported, there is absolutely no evidence that a takeover will happen in the foreseeable future. Goldberg simply believes the company is “a potential target” for a larger company (Dell, Nokia) looking to break in or expand their presence in the mobile market.“As the only standalone entity, we think there is a real potential for Palm to be acquired in the next two years,” Goldberg wrote.

“We think Palm has created a valuable asset in its webOS. If they can grow their installed base of users and keep the carrier momentum going, this value should become more apparent,” continued Goldberg.

As for device sales, Goldberg believes Palm can sell 600,000 units into Verizon in this quarter alone. He also speculates the Palm’s App Catalog could outpace RIM and Android by the end of this year.

[via WSJ]