Lenovo to acquire Palm?

Rumors over a possible buyout of Palm by computer manufacturer Lenovo caused the mobile phone company's stock to rise by 20 percent today. 

Hedge fund investors are speculating that Lenovo will soon place a bid to acquire Palm, though option strategist Frederic Ruffy of WhatsTrading.com calls it "unsubstantiated speculation" that's only based on Palm's performance over the past several months. Palm's stock, marred by a loss of around 60 percent just this year, jumped as high as $4.65 a share today and eventually closed at $4.62—up 77 cents and 20% from yesterday.

Lenovo CEO Yang Yuanqing did not comment on the speculated buyout of Palm, but did state that they were looking to "build out its mobile Internet business" through planned future acquisitions. Shaw Wu of Kaufman Brothers, an investment banking firm, stated that Lenovo might not even have the funds to acquire Palm and predicted HP as a more plausible suitor. 

Palm’s value has suffered some major losses through this year as slow sales of its Pre and Pixi devices has worried investors of its future. The stock has plummeted to pre-CES 2009 levels, right before the company introduced its new webOS mobile operating system and the Palm Pre.  

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27 Comments

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Shiranui said,
Let palm die. Lenovo would be better off bringing out a nice android device.

Yep They should call it Y.A.A.D (Yet Another Android Device).

Shiranui said,
Let palm die. Lenovo would be better off bringing out a nice android device.

Too late, they already have one in the works.

warwagon said,

Yep They should call it Y.A.A.D (Yet Another Android Device).

What so your saying having a big choice of Android phones is bad?

thealexweb said,

What so your saying having a big choice of Android phones is bad?

I think thats what he is saying. I agree. Too many. No differentiation, except hardware.

IBM + PALM + LENOVO ??? YUCK!... although the people at Palm could teach the boys at lenovo some product designing. I love the thinkpad.. but you gotta admit. Its not the best looking laptop out there.

KillerZ123 said,
I think thinkpads look great unlike that plastic crap others make.

+1 Shiny, cheap, brittle, prone to scratches plastic may look good, but it is really just crap. Just look at it in a month or two. Lenovo computers have a style that doesn't get old and are also well built. Their PC's have excellent cable management as well.

KillerZ123 said,
I think thinkpads look great unlike that plastic crap others make.

The ThinkPad is also made of plastic. They are not as well made as people make out.

Usually these rumors turn out to be true in a form or another, but Palm might not be able to stick around in its current form for much longer. Could Google buy them? Or even Apple? Not likely, but someone likely will.

Palm will rise again, hopefully. WebOS is a really good OS, but is held back right now. If it takes a buyer to take WebOS to it's full potential then so be it. Just don't mess it up.

Tech Star said,
Palm will rise again, hopefully. WebOS is a really good OS, but is held back right now. If it takes a buyer to take WebOS to it's full potential then so be it. Just don't mess it up.

How they could take WebOS to its full potential: open source it like Google is doing and let it run on third-party devices. If they addressed fragmentation a little better than Google, they could have their future there.

amon91 said,

How they could take WebOS to its full potential: open source it like Google is doing and let it run on third-party devices. If they addressed fragmentation a little better than Google, they could have their future there.

Google is addressing that fragmentation already, so Palm would still be behind the curve. I don't think releasing it as Open Source and licensing it to third parties is a bad idea though.

murkurie said,
Rather have HP then Lenovo buy palm, keep it's American

+1 - WebOS is almost there and I think HP has the ability to take it that last step. They do a wonderful job integrating Laptops, PC's, and Peripherals for seamless operation and it would be awesome if they could bring smart phones into that mix.

murkurie said,

Yes, I noticed after I posted it, plus it was only 1 grammar error

"then" instead of "than"
"Palm" should have been capitalized
"it's" when it should have been "it"
no full-stop (period) at the end

Forgive me - I get so bored at work and have to amuse myself somehow.

Anyway, I would hope whoever bought it would keep most of the American staff.

Shiranui said,
"then" instead of "than"
"Palm" should have been capitalized
"it's" when it should have been "it"
no full-stop (period) at the end

Forgive me - I get so bored at work and have to amuse myself somehow.

Anyway, I would hope whoever bought it would keep most of the American staff.

hahaha I noticed all of them as well but I'm just far too exhausted to even pay attention to them right now... too many days with too little sleep and too much overtime... 10 day Vacation starts Friday though! =)

murkurie said,
Rather have HP then Lenovo buy palm, keep it's American

rather Nokia buys them (yes i'm European :-) ). Seriously, HP has a way of ruining hardware

aatnet said,

rather Nokia buys them (yes i'm European :-) ). Seriously, HP has a way of ruining hardware


So does Nokia...

Shiranui said,

"then" instead of "than"
"Palm" should have been capitalized
"it's" when it should have been "it"
no full-stop (period) at the end

Forgive me - I get so bored at work and have to amuse myself somehow.

Anyway, I would hope whoever bought it would keep most of the American staff.

grammar nazi alert!