HTC passes, Lenovo emerges as leading candidate to buy beleaguered Palm, say sources

“Lenovo, the world’s No.4 PC brand, has emerged as the leading candidate to buy struggling smartphone maker Palm, after the U.S. firm was rebuffed by other potential Asian buyers, sources said,” Kelvin Soh reports for Reuters.

“Investment banking sources said they had heard that Lenovo is looking into a possible bid for Palm, but did not have any further details,” Soh reports. “HTC, the world’s No. 5 smartphone brand and one name associated with a possible offer, was approached about making a bid but decided to pass after reviewing Palm’s books, a source with direct knowledge of the situation said.”

MacDailyNews Take: Looking at Palm’s books is slightly less appealing than looking at Ed Asner’s naked ass.

Soh continues, “Huawei, the world’s No.2 wireless telecoms equipment maker, also declined to put in a bid, a company source said earlier this month… Earlier this week, Lenovo’s Chief Executive Yang Yuanqing also declined to comment about a possible Palm buy.”

“Based on recent deals in the technology sector, a Palm sale could potentially fetch $1.3 billion, given its current $1 billion market capitalisation and the 30 percent premium recently paid in tech deals. The company’s advisers had previously been seeking about $1.2 billion for the company — a valuation considered too rich by many suitors, one investment banking source said, speaking on the condition of anonymity,” Soh reports. “Another investment banking source, who also spoke on condition of anonymity, said he was unsure on how aggressively Lenovo was going to be in bidding for Palm. ‘What are you buying – a good operating system?’ he said. ‘It’s a wounded brand.'”

MacDailyNews Take: Wounded?! “Oh, my God. Get a doctor!” “Get a hearse. He’s dead. Fsck him.” (Bonus points for naming the movie and actors.)

Soh continues, “Palm has struggled to generate interest from buyers in its Pre and Pixi smartphones, with customers turning to more popular buys such as Apple’s iPhone… The Palm purchase, if realised, would also fit into Lenovo’s history of expanding into competitive Western markets by buying former product pioneers that have lost their edge. The company is best known for buying IBM’s PC business in 2005.”

Full article here.

20 Comments

  1. Lenovo is probably the only bidder since their main market is China, where the Chinese Government pisses on all American Patents.

    The only fun part of this is watching the executives fly over to china for good.

  2. Didn’t Lenovo only by part of IBM’s PC box business in 2005. IBM kept the right to make some in that deal. Anyone seen an IBM laptop in the past year or 2? I guess IBM really didn’t need it and could have sold them everything in 2005.

  3. This is all hype from investment bankers hoping to plunder and pillage more money. Sort of self fulfilling prophecy to get Lenovo into thinking they want Palm. Just let Palm sink and be done with it.

  4. “”HTC, the world’s No. 5 smartphone brand”

    HTC is NOT the world’s #5 smartphone brand, it’s the #5 mfr. They contract manufacture for lots of other companies. Under their own brand, they are further down the list.

    As for Lenovo, they bought the laptop business from IBM, and have been only marginally profitable, so it’s not like based upon that experience they are dying to buy another fading American brand.

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