HTC Walks Out of the Palm Deal, Palm Claims it Can Survive

HTC has recently walked out of the Palm deal as a potential buyer after reviewing Palm’s position. HTC, which is the world’s #5 smartphone manufacturer is officially out of the picture now.

An inside source made a statement at Reuters saying,

There just weren’t enough synergies to take the deal forward.

Another company Huawei, a leader in wireless technologies also declined to place a bid for Palm. This has left out Lenovo as the only potential buyer.

In the meanwhile, this news is already taking Lenovo stocks to a 23 month high. Given that Palm can fetch Lenovo a 1.3 billion, which is 54% of current Lenovo cash stash, this deal looks profitable and optimal for Lenovo.

Even after these leaks, representatives from HTC and Lenovo have declined to comment on this matter.

On the other hand, Palm has claimed that it can survive without selling itself. Jon Rubinstein, the chief executive of Palm hopes that other handset manufacturers use its operating system. This can boost the company’s revenue and keep it in business. He has also made a statement claiming its survival saying,

I believe Palm can survive as an independent company. We have a plan that gets us to profitability.

Palm has also revealed that it has not yet made any final decisions on selling itself off. It seems like Palm sure has a plan. Though,  the latest on its to-do list is appointing banking advisors to analyze this situation.

(Via: Reuters and Financial Times)

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Chinmoy Kanjilal

Chinmoy Kanjilal is a FOSS enthusiast and evangelist. He is passionate about Android. Security exploits turn him on and he loves to tinker with computer networks. You can connect with him on Twitter @ckandroid.