Palm Tried to Buy PalmSource

by Reads (15,824)

Earlier this month, much of the handheld world was stunned by the sudden announcement that PalmSource was being bought by Japan-based Access Co., Ltd.

It wasn’t surprising that this company was being acquired, but most people had been expecting the buyer to be Palm, Inc.

According to BusinessWeek, Palm tried to purchase PalmSource but was outbid.

Big Money

The deal was in negotiations when word got around that PalmSource was available, and several large mobile phone makers in both the United States and Europe put in bids.

The price to Buy PalmSource quickly shot up beyond what Palm was willing to pay.

In order to buy PalmSource, Access had to pay $18.50 for each share of its stock, at a time when PalmSource’s stock was trading at just $10.09.

“There was a point beyond which we didn’t think it made sense,” Palm’s CEO Ed Colligan wrote in an email to his employees.

Moving Forward

At this point, it doesn’t look like PalmSource’s acquisition will cause major changes in the handheld industry.

The company, as a wholly-owned subsidiary of Access, will continue to support Palm OS Garnet and will complete work on Palm OS for Linux.

Palm will continue to use the Palm OS on its handhelds and smartphones, but it is widely rumored to be readying its first Treo running Windows Mobile 5.0. Still, this is almost certainly a project that began long before PalmSource was bought out.

Thanks to Pocket PC Thoughts for the tip.

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