Palm Throws In The Towel

Last month Palm announced their 3rd Quarter losses of $22 million. The day this was announced, stock shares took over a 25% plunge and dipped below $5 a share. Q3 of 2008 Palm had a $98 million loss. Experts have been predicting that Palm would be selling for a while now, but we still were not sure. CEO Jon Rubinstein sent a letter to all of his employees after the company reported the $22 million Q3. His words offered hope:


“Our recent underperformance has been very disappointing, but the potential for Palm remains strong. The work we’re doing to improve sales is having an impact, we’re making great progress on future products, and we’re looking forward to upcoming launches with new carrier partners. Most importantly, we have built a unique and highly differentiated platform in webOS, which will provide us with a considerable – and growing – advantage as we move forward.”

But that was false hope. Bloomberg has announced that Palm is officially for sale. According to the article the 2 most likely bidders will be HTC and Lenovo. It would make perfect sense for HTC to want to buy Palm with the pending law suits between HTC and Apple. Palm has some patents that could help HTC in the lawsuit with Apple. Palm will be seeking bids as early as this week so keep an eye on News Blaze for more information on this sale.