updated 07:50 am EDT, Mon April 12, 2010
Palm asking bankers for selloff bids this week
Palm is already trying to sell itself off and could get bids as soon as this week, three sources said on Monday. Both Goldman Sachs and Qatalyst Partners have reportedly been contracted to locate a buyer. The Bloomberg tips back rumors of HTC and Lenovo being candidates, though how close they may be isn't known.
Dell is said to have considered a deal but to have backed off. The acquisition may actually come from capable Asian companies that have relatively little recognition in the US, such as Huawei or ZTE.
None of the involved companies have agreed to comment on the assertions.
The seemingly emergency sell-off would likely come as a reaction to the company's extremely difficult winter quarter, in which it sold less than half of the phones shipped. Palm has blamed the problems on a lack of awareness at Verizon along with delays pushing the Pre Plus and Pixi Plus past the Droid launch, leaving the Android rival with longer and more emphatic marketing.
Without a buyer, Palm has about $779 million in cash and may have trouble lasting significantly past 2010. Elevation Partners, which has kept Palm afloat through investments, hasn't said whether it would inject more cash if necessary.