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Palm rebuffed by Huawei on takeover talks

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.



By Electronista Staff
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Comments

  1. darkelf

    Fresh-Faced Recruit

    Joined: Nov 2003

    -1

    what objections?

    perhaps, "your company is utterly worthless, we might as well pile our cash together and set fire to it"

  1. jmonty12

    Fresh-Faced Recruit

    Joined: Jun 2003

    -1

    Why would they?

    "It's not clear what objections, if any, Huawei might have."

    Ummm, they don't want it?

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    +3

    Palm is fine

    800 million in cash, plus 500 million worth of in-stock inventory (or whatever the number actually is).

    They can lower costs, and do what Apple had to do so many years ago - start showing a profit so that the press would stop predicting their death.

    They have advertising, a great "hotspot" on Verizon that gives the phone a compelling feature, plus new vendors coming online.

    Revenues are significant, significant enough that they just need to get their costs under those revenues and report a "surprise" profit.



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