Palm and handspring may merge

Palm,Inc. and Handspring, Inc. are planning a merger that will be discussed at a shareholders' meeting in the US later this month. If the merger happens, it will help Palm get into the smartphone market and offer a broader portfolio of mobile computing and communication devices.

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By  Vijaya Cherian Published  October 20, 2003

Palm,Inc. and Handspring, Inc. are planning a merger that will be discussed at a shareholders' meeting in the US later this month. If the merger happens, it will help Palm get into the smartphone market and offer a broader portfolio of mobile computing and communication devices.

Commenting on the negotiations, Colin Holloway, marketing manager for Palm, Northern Europe stated at Gitex that if the merger happened, it would help Palm get into the smartphone market and offer a broader portfolio of mobile computing and communication devices.

The discussion could result in the spin-off of PalmSource, Inc., the Palm subsidiary responsible for developing and licensing the Palm OS platform for handheld computers and smartphones, and the distribution of PalmSource common stock to Palm's stockholders. The transaction would also result in the acquisition of Handspring.

Following the spin-off of PalmSource and the acquisition of Handspring, Palm will assume a new name, PalmOne, Inc. Products under PalmOne will bear one of the company's three subbrands: Zire, aimed at consumers and multimedia enthusiasts; Tungsten, targeting mobile professionals and business; and Treo, the subbrand for smartphones, which are marketed to both individuals and businesses.

"Palm is confident the transaction will result in the creation of the leading handheld-software platform company and an even stronger market leader in mobile devices and solutions," says Eric Benhamou, Palm chairman and interim chief executive officer. "We believe these 'pure-play' companies will attract new sets of investors and lead to increased stockholder value," he adds.

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