updated 09:25 am EDT, Tue April 13, 2010
Huawei isn't hearing Palm request for buyout
Huawei has largely rejected Palm's request for a buyout, a tip said this morning. Palm had reportedly proposed that Huawei take over the company in mid-February but hasn't made any progress since. It's not clear what objections, if any, Huawei might have.
A spokesperson for Huawei said it didn't comment on possible deals but said the Chinese company is "always open" to deals that will improve its business.
Palm has just $779 million in cash and is still losing cash at a rate that could have it run dry within less than two years, or sooner if its losses worsen. The Pre and Pixi lines have been received as major improvements but have fought to gain attention versus newer iPhones and especially the Motorola Droid, whose launch in the fall undermined the attention that would otherwise have gone to the Pre Plus and Pixi Plus at Verizon.