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Apple, RIM, and Google wanted to buy Palm?
Wow…here is a little gem I wasn’t expecting today. Business Insider reports on some juicy details we didn’t have before about the Palm bidding wars. Earlier we had reported that several companies were fighting over Palm once the bidding got started. Back then, we didn’t know who was fighting. The companies involved were simply A, B, C, and D. Today we get some more details, and it may be just enough to put all the pieces together.; o$ T2 Y% [$ E) T r
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First, it has been revealed that Apple really did want to buy Palm, but they low balled it and weren’t really competitive. What is really interesting is, according to BI’s sources, “Apple even seemed committed to funding Palm’s operations, perhaps to challenge RIM’s dominance in the keyboarded segment of the smartphone industry”. Now they doubt that, and so do we. Apple would definitely want to get their hands on Palm’s patent portfolio, but to think for a second that Apple would have let Palm and webOS continue would take some serious snorting of the fairy dust.: [' e2 m1 l# x' b' K7 B+ N
Next, we learned that RIM REEEEEALLY wanted Palm (and bid way more than HP initially), but then they got some cold feet and lowered their offer to a bit less than Palm was offering.
8 p2 s+ Y* y9 b" d* BGoogle…Google, kinda got involved. Dipped it’s toes in the water, then said “Nah!” and moved on. Not really a serious contender as far as anyone could tell.
M2 N# C) ]* fOf course, previous reports showed that Lenovo was interested as well.5 I" X( f% J( Y* P
Ok, so now that we know who was courting our beloved Palm, did the best company win? In all honesty, I think so. Here’s why:5 Z# i1 w4 a" N+ B# O$ _; a
1. Apple was in it for the patents…pure and simple. If they would have won, then Palm and webOS would have ceased to exist and we would all be grumpy. Or we may have gotten a phone that dropped calls all the time (sorry, couldn’t resist)., u K3 x2 V) j; y
2. Google…again, I think this would have been a patent grab. Best case scenario here would have been webOS would have rubbed off on Android. Who likes that idea? Bleh…
5 r; t& n0 G, r6 u. c9 b+ G6 a3. Lenovo. This could have been interesting, and I think it probably would have been a very similar situation to HP. Computer company wanting to get a head start on the smartphone business. Probably would have ended up pretty well, but the fact that they are a Chinese company makes it a bit hard to tell.
1 H/ J+ Y* E% J/ Z* z a9 w: g4. RIM. This one is a toughie…RIM is in dire need of some OS love. Their fans are rabid and many, but there is no question their OS is behind the times. Would they have adopted webOS and let it thrive, or would they have absorbed it and let it turn into some crazy frankenOS with their BB stuff. No way to know, but I lean toward the latter…
' F) E4 f) z+ W; |All in all, very interesting stuff. Doesn’t mean much in the ultimate scheme of things, but learning the details that went on behind the scenes is always interesting.' A' g9 d6 z/ j7 I5 ^9 K
Finally…if you want a breakdown of who A, B, C, and D may have been. Here is BI’s guess which sounds just about right to us.' X0 e% s9 f2 x @' v1 P8 q- z* t! ~% g
" p4 L3 T9 k, |8 M, v0 h: G/ Z. }- “Company A” offered $600 million in cash and didn’t raise its bid. We assume this is Apple, making its lowball cash bid but not getting into a bidding war.
- “Company B” proposed to acquire Palm in a stock-for-stock transaction, but also said that its “proposed transaction would take at least several months longer to close than is customary.” We assume this is Lenovo, the Chinese PC maker that was reportedly the “leading candidate” for Palm in mid-April.
- “Company C” first wanted to acquire patent rights from Palm, then later tried to buy Palm as a whole. It originally offered $6-7 per share, but after more diligence, lowered its bid to $5.50 per share. We assume this is RIM.
- “Company D” contacted Palm to discuss an intellectual property transaction but did not make a proposal to acquire Palm. Discussions continued intermittently and fizzled out. We assume this is Google.
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