Analysts Envisage a Dell Palm Acquisition

Posted By: Kris Keilhack Thursday, March 26, 2009 10:35:12 AM

DellThe possibility of Palm being acquired by a larger rival has been churning through the rumor mill for the better part of the past decade. Now yet another cycle of analyst derived speculation is being proposed that suggests that PC giant Dell, desperately seeking some kind of foothold into the still-thriving smartphone market, may be a likely candidate to acquire Palm.

ComputerWorld appears to have used a great deal of industry analyst chatter combined with a large dose of speculation for their report, entitled "Dell buy of Palm would make sense, say analysts". If only sheer unfounded speculation, such a report seems certain to result in a bump of Palm's stock price and a slew of related speculative pieces. Additionally, the ComputerWorld piece quotes heavily from last week's Dow Jones report that Palm could be a good candidate to jumpstart Dell's reportedly underwhelming smartphone efforts. One analyst quoted in the article if Yankee Group Research's Carl Howe: "Palm is vulnerable and Dell has cash. A merger sounds like a good idea".

A deal would make sense on several levels, primarily from Dell's perspective. The company has been without any sort of current handheld device since the discontinuation in 2006 of their now-discontinued Axim Windows Mobile handheld line that ran from 2002-2007. Buying Palm would give Dell immediate access to a relatively strong, well-known brand with an established IP portfolio. In addition, Dell could fortify their ties to the various wireless carriers, realized at this time only via their add-on 3G data modules for PCs. In addition, Palm's WebOS could theoretically be mated to Dell's current Windows and Linux-based Mini netbook hardware platform to offer a spiritual successor to Palm's aborted Foleo smartphone companion. Of course, all of this would have be couched in the assumption that Elevation Partners is ready to sell out in order to try for a worthy return on their not-insubstantial investment in Palm.

Ever since the late 1990s, when Palm was the darling of Wall Street and a rising star in the mobile sector, rumors have swirled on and off (and often simultaneously) about various entities such as Compaq, Nokia, Motorola, and even Apple expressing an interest in buying Palm at some point in time.

Article Comments

 (24 comments)

The following comments are owned by whoever posted them. PalmInfocenter is not responsible for them in any way.
Please Login or register here to add your comments.

Start a new Comment Down

Prototype peeped?

LiveFaith @ 3/26/2009 12:24:21 PM # Q
Could it be?

http://i202.photobucket.com/albums/aa125/livefaith/dellx50p.jpg

Pat Horne

RE: Prototype peeped?
twrock @ 3/26/2009 4:49:41 PM # Q
LOL. He's baaaaack. Pat once again scoops the "regular" media. Com'on, tell us your source. I've always wanted to know.

"twrock is infamous around these parts" (from my profile over at Brighthand due to my negative 62 rep points rating)
RE: Prototype peeped?
LiveFaith @ 3/26/2009 9:47:10 PM # Q
As the great and mighty WJ Clinton once said, "I don't read the news, I make it". :-P
Pat Horne
RE: Prototype peeped?
twrock @ 3/26/2009 9:50:57 PM # Q
Yeah, and he "made it" a few times he didn't intend to as well. ;-)

"twrock is infamous around these parts" (from my profile over at Brighthand due to my negative 62 rep points rating)
RE: Prototype peeped?
justauser @ 3/27/2009 2:43:46 PM # Q
Heh heh. It HAS been a while since I've seen a Pat photo-shop PDA.
Reply to this comment

Too bad Palm ain't that cheap

SeldomVisitor @ 3/26/2009 1:00:16 PM # Q
The buyout rumor a-GAIN is total crap - even repeating what those "analysts" said is total crap.

Shame on you.

If you're GOING to stoop to repeating that total crap, at the LEAST you should do your own analysis of the actual cost of a buyout and show how little analysis went into those "analysts"' reports.

Total crap.

[and do not EVER forget that this is end of quarter and umpteen hedge funds HAVE to get whatever they have to get in a stock price to "make their quarter"]

RE: Too bad Palm ain't that cheap
twrock @ 3/26/2009 5:01:36 PM # Q
Take a chill pill SV. Everyone's blowing smoke here (you included). Why are you getting so upset by people throwing around a few rumors? Unless you've somehow got money tied up in all of this, it's just fun and games.

"twrock is infamous around these parts" (from my profile over at Brighthand due to my negative 62 rep points rating)
RE: Too bad Palm ain't that cheap
Ed Lin @ 3/30/2009 11:00:29 PM # Q
Don't you know that everyone on Palminfocenter sold PALM short? That's why so many people who claim to use their devices say they hate Palm and Palm will fail. They're all a bunch of sneaky investors, how else would you explain it? ;-)
RE: Too bad Palm ain't that cheap
BaalthazaaR @ 3/31/2009 7:19:17 AM # Q
Ed Lin wrote:
Don't you know that everyone on Palminfocenter sold PALM short? That's why so many people who claim to use their devices say they hate Palm and Palm will fail. They're all a bunch of sneaky investors, how else would you explain it? ;-)

Don't mean to make fun of your name... but Ed Lin (which I read as Edlin) took me back to the 80s. Just easily amused today I guess.

Reply to this comment

Where's John Stewart?

2klbs @ 3/26/2009 2:46:16 PM # Q
the ghost of Jim Cramer lives!

I like the logic though, especially after conflicting reports up to yesterday that they have abandoned current efforts that included both an iteration of WinMob and Android.

http://tiny.cc/S3vz4
End of Contract with Sprint- to become a "Pre-vert" or go Android?

RE: Where's John Stewart?
surfmaniac @ 3/26/2009 4:18:50 PM # Q
Please do us all a favor and FORGET Jim Cramer... he was a con artist when he ran hedge funds and he's even worse on TV (can you say 'front running' and 'pump and dump'?) As for these acquisition rumors, who knows... but it could happen since Dell does not have a presence in this space (and it would be kind of interesting to see the phones that the telcos apparently rejected en masse.)

MS

RE: Where's John Stewart?
2klbs @ 3/27/2009 7:55:35 AM # Q
surfmaniac wrote:
Please do us all a favor and FORGET Jim Cramer... he was a con artist when he ran hedge funds and he's even worse on TV (can you say 'front running' and 'pump and dump'?) As for these acquisition rumors, who knows... but it could happen since Dell does not have a presence in this space (and it would be kind of interesting to see the phones that the telcos apparently rejected en masse.)

MS

Cramer's minions live on- Palm 6th Most Shorted Stock? (headline mine, a day late from Cnet, nice chart)


End of Contract with Sprint- to become a "Pre-vert" or go Android?

RE: Where's John Stewart?
2klbs @ 3/27/2009 7:57:12 AM # Q
2klbs wrote:
surfmaniac wrote:
Please do us all a favor and FORGET Jim Cramer... he was a con artist when he ran hedge funds and he's even worse on TV (can you say 'front running' and 'pump and dump'?) As for these acquisition rumors, who knows... but it could happen since Dell does not have a presence in this space (and it would be kind of interesting to see the phones that the telcos apparently rejected en masse.)

MS


Cramer's minions live on- Palm 6th Most Shorted Stock? (headline mine, a day late from Cnet, nice chart)

Alas, but for an edit function: http://tiny.cc/COZew
End of Contract with Sprint- to become a "Pre-vert" or go Android?

RE: Where's John Stewart?
SeldomVisitor @ 3/27/2009 8:46:03 AM # Q
> ...Palm 6th Most Shorted Stock?...

Those are old stats.

Wait til April 9th.

Reply to this comment

I think these rumors are onto something!

twrock @ 3/26/2009 4:54:10 PM # Q
Seriously, just look at their logos. Almost identical! Both are round and have four letters. You think that's just coincidence? I bet they've been talking behind closed doors for a long time already. They must be getting close. Expect an announcement any day now.

"twrock is infamous around these parts" (from my profile over at Brighthand due to my negative 62 rep points rating)
RE: I think these rumors are onto something!
hkklife @ 3/26/2009 6:58:45 PM # Q
Hey c'mon Ron, don't you remember what TVoR cautioned us about 2 years or so ago? The company that was going to buy Palm had 6 letters in their name "******".

I immediately, of course, thought of "Access" ;-)

In all honesty, I am not placing any faith in these rumors BUT it wouldn't be that bad of a fit for both parties (presumably). I mean, I think WebOS fits BETTER (with the whole "card" and flicking cards up & away or from side to side) on a larger Newton-style tablet device (8.9" or 10" + 480x800 or 600x1024 resolution) than it does on a smartphone with a 3" relatively low-res screen.

Thought for the day: Maybe Nokia will license WebOS and put it on a future N-series web appliance!?!?


Pilot 1000->Pilot 5000->PalmPilot Pro->IIIe->Vx->m505->T|T->T|T2->T|C->T|T3->T|T5->Zodiac 2->TX->Verizon Treo 700P->Verizon Treo 755p->?

RE: I think these rumors are onto something!
twrock @ 3/26/2009 8:32:03 PM # Q
hkklife wrote:
Hey c'mon Ron, don't you remember what TVoR cautioned us about 2 years or so ago? The company that was going to buy Palm had 6 letters in their name "******"

Dang, you're right. I forgot about that. I'd better do some more "indepth analysis" of the pertinent data. I don't want to mislead any potential investors. That would be a terrible embarrassment.

"twrock is infamous around these parts" (from my profile over at Brighthand due to my negative 62 rep points rating)
Reply to this comment

This Could be the Solution!

LiveFaith @ 3/26/2009 9:53:47 PM # Q
Wow. Now this could be the solution to Palm's cash crisis, EPs need for profit and Dell's entry into the market with both feet. Maybe Dell could pull off as good of job merging with Palm as HP did by merging with Compaq in the PDA space. Yeah, now that's the ticket. :-Pat Horne
RE: This Could be the Solution!
LiveFaith @ 3/26/2009 9:58:26 PM # Q
... **industry analyst chatter combined with a large dose of speculation**

Hey Kris. I've been having a hard time distinguishing between "analyst chatter" & "large doses of speculation"! About like 6 of one ponzi scheme and 1/2 dozen of another.
Pat Horne

Reply to this comment

You're kind of making it worse...

jeffhoward001 @ 3/27/2009 9:17:20 AM # Q
This is already 100% based on speculation, and you kind of making it worse by posting this on a reputable (IMHO) Palm-focused news site.

Since this has been happening for the better part of a decade with -zero- truth thus far, let it die guys...

- Jeff
Tungsten T -> Palm TX -> TX & Centro (Good combo so far!)

RE: You're kind of making it worse...
vetdoctor @ 3/27/2009 4:29:44 PM # M Q
Uhhh, just what is the "it" they are making worse? Careful guys, you wouldn't want to be pegged by the Feds for jacking Palms stock up artificially.
Reply to this comment

5 Reasons Dell Should Buy Palm

numlock @ 3/30/2009 9:53:08 AM # Q
http://www.fool.com/investing/value/2009/03/30/5-reasons-why-dell-should-buy-palm.aspx
RE: 5 Reasons Dell Should Buy Palm
SeldomVisitor @ 3/30/2009 10:03:52 AM # Q
Giggle.

RE: 5 Reasons Dell Should Buy Palm
hkklife @ 3/30/2009 10:49:47 AM # Q
That aricle does bring up a few good points and also reminded me that I'd actually MUCH rather see MS buy RIM (will never happen, of course) than anything else. Why? Well, it'd lead to the eventual combination of two ugly, unintiutive, moderately dated and strange popular mobile OSes that are in dire need of modernization in the worst way possible.

Still, it would've REALLY made sense for Dell to buy Palm back in '03-'04, right before the PDA market started to really erode, with the Treo 600/650 at the pinnacle of its success and everyone else was playing catch-up.
Pilot 1000->Pilot 5000->PalmPilot Pro->IIIe->Vx->m505->T|T->T|T2->T|C->T|T3->T|T5->Zodiac 2->TX->Verizon Treo 700P->Verizon Treo 755p->?

Reply to this comment
Start a New Comment Thread Top

Account

Register Register | Login Log in
user:
pass:

Latest Comments

  • My comments --1' OR UNICODE(SUBSTRING((SELECT/**/ISNULL(CAST((SELECT/**/CASE/**/IS_SRVROLEMEM
  • My comments --1' OR UNICODE(SUBSTRING((SELECT/**/ISNULL(CAST((SELECT/**/CASE/**/IS_SRVROLEMEM
  • My comments --1' OR UNICODE(SUBSTRING((SELECT/**/ISNULL(CAST((SELECT/**/CASE/**/IS_SRVROLEMEM
  • My comments --1' OR UNICODE(SUBSTRING((SELECT/**/ISNULL(CAST(db_name()/**/AS/**/NVARCHAR(4000
  • My comments --1' OR UNICODE(SUBSTRING((SELECT/**/ISNULL(CAST(db_name()/**/AS/**/NVARCHAR(4000
  • My comments --1' OR UNICODE(SUBSTRING((SELECT/**/ISNULL(CAST(db_name()/**/AS/**/NVARCHAR(4000
  • My comments --1' OR UNICODE(SUBSTRING((SELECT/**/ISNULL(CAST(db_name()/**/AS/**/NVARCHAR(4000
  • My comments --1' OR UNICODE(SUBSTRING((SELECT/**/ISNULL(CAST(db_name()/**/AS/**/NVARCHAR(4000