Morgan Stanley suggests Motorola, Nokia would benefit most from Palm acquisition

Today’s wheel of Palm lands on Nokia and Motorola. Morgan Stanley has weighed in saying that Nokia and Motorola would derive the most strategic benefit from acquiring Palm. Motorola’s CEO Sanjay Jha has hinted in the past that the company would like it’s own OS. Like HTC, Motorola manufactures phones that are dependent upon Google’s Android OS. Motorola has yet to announce any Windows 7 Phones, but they are expected to join HTC in manufacturing phones running Microsoft’s new OS.


We believe the potential ownership of WebOS would create a more defendable and viable long-term mobile devices business” for Motorola, the Morgan Stanley report said.

The analysts also suggested HTC and RIM may also be a “strategic fit”. DELL, Microsoft, Samsung, Lenovo and LG are “possible but likely less interested”.

As with all of these reports, there is no hard evidence regarding any of it. Palm hasn’t commented and the companies listed above have all issued a no comment.

Editor’s note: Both HTC and Motorola are the most interesting companies, since their current strategy involves manufacturing Android and Windows Phone devices. If they were to purchase Palm, it would likely be for webOS, although one could surmise that HTC could do it strictly for the patent portfolio. This would likely result in a major shift in their strategy. Would they continue to develop phones for Android and Windows? How would the acquisition affect their current relationships with Google and Microsoft? Would they make a bold move and go all in with webOS? These are likely just a few of the questions being bandied if the rumors regarding their interest in Palm is to be believed.

via Business Week

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]