Despite rampant rumors and speculation, Palm, Inc. did not announce that it was being acquired today.
Rumors have been circulating for weeks that Palm, Inc. is going to be bought by another company, and some sources had indicated that a deal was going to be announced when Palm released the results of its most recent financial quarter.
However, the financial announcement and the associated conference call has come and gone without any revelations about a buyout.
Palm executives were asked several times about the rumors, but they declined to comment.
Is It Over?
Just because there wasn’t an official announcement of a company acquiring Palm today doesn’t mean that it isn’t going to happen.
Several sources have indicated that there is a bidding process going on between Nokia, Motorola, and two private equity firms, and while it was said that Morgan Stanley — the bank that’s supposedly helping Palm with this auction — wanted a deal closed by today, there was no indication that this was a define deadline, beyond which no deal was possible.
The lack of an announcement today could simply be an indication that the bidding process is taking longer than some had hoped. At the same time, it could also mean that there is no truth to these rumors at all.
The price of Palm’s stock, after steadily rising on speculation of a buy-out, dropped 8.8% percent today, after Motorola’s quarterly financial announcement was released yesterday without word of it acquiring Palm.