HTC rumoured to be interested in struggling mobile firm
Palm, the troubled maker of the Pre and Pixi smartphones, is looking for a buyer, according to reports.
Bloomberg reports that the company is working with Goldman Sachs on the sale, which has been driven by a series of poor financial results. Its most recent figures revealed lower than expected sales figures for the Pre and Pixi devices, with a net loss of $22m on revenue of $349m.
The company issued a warning that sales for the forth quarter, which ends in May, will be around $150m – half the amount most analysts had predicted.
The report suggested that both HTC and Lenovo have already looked at Palm as a potential acquisition target and may return with offers in the near future. If the company is taken over, its new owner would have access to the WebOS mobile operating system, which competes against the likes of Apple’s iPhone OS and Google’s Android, Bloomberg said.
Palm’s share price has been falling steadily for a while now, with Bloomberg claiming that stock had fallen 60% this year alone on the back of the poor sales figures for the Pre and Pixi. However Palm’s stock surged 32% on Friday after rumours of the alleged takeover surfaced.