Palm’s buyout of Handspring, via a stock-swap, will supposedly save the two companies $25 million a year. So what does the deal suggest? A stronger Palm? Or fear that a software crisis could be ahead–meaning that Palm needs to buy up more brains and market share to gird for the worst? Here’s hoping for the best.
Maybe the extra resources and people, including the returned Donna Dubinsky and Jeff Hawkins, will make a difference. Good luck, Palm. More details from Reuters, which quotes an analyst as saying the stock-swap will help Palm in the telecom/wireless area.
Perhaps, with new distractions, the deal will lead to a more laid-back ‘tude in the e-book-format wars. Or, conversely, maybe confidence from the buyout, which helped Palm’s stock price, will mean a harder stance.
A little context about the overall deal–via Reuters:
The deal comes against the backdrop of dwindling demand for handheld devices. Both companies posted losses in the latest quarter and are projecting mounting losses in the current quarter.
Global shipments of handheld devices fell 21 percent in the first quarter, according to research firm International Data Corp., reflecting the decline in technology spending by corporations.
Memo to Palm: Think of the big picture. Imagine all the extra Palms you could move if consumers did not have to worry so much about the Tower of e-Babel. High-speed wireless connections could ultimately end up as a great distribution mechanism regardless of the format in use.
