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HTC will not purchase Palm Inc

Remember the article we posted some time back about Palm being on the lookout for potential buyers? Well, we know of at least one company which have decided that they do not want to purchase the ailing smartphone maker: HTC.

Read on for more information.

It seems that Palm Inc’s woes are set to accumulate: HTC’ the world’s 5th largest smartphone maker, had decided after reviewing Palm’s numbers that it will not participate in the bid to buy the ailing Palm.

According to sources with immediate knowledge on the issue, HTC decided to pass up on the offer due to the lack of “synergy to take the deal forward”, although there was little info about what actually transpired in the talks between HTC and Palm Inc.

In addition, Engadget has reported that talks between Palm and Hwawei has come to a standstill, and it is unlikely that both parties will come to a settlement anytime soon.

This leaves computer maker Lenovo as the most likely candidate to purchase Palm, as Reuters had reported that Lenovo has recently bought back its own mobile communications unit to assist in its aim of becoming “the Chinese market leader in mobile communications”.

But even then, analysts are doubtful that Lenovo will be keen with the deal, as the Thinkpad manufacturer has its own reputation to consider, and Palm’s current state will not do any favours for the computer maker’s brand image.

Furthermore, there’s also the issue of short-term losses which Lenovo had to be prepared to suffer.

“It’s not a good idea for Lenovo to buy Palm right now,” said Vincent Chen, an analyst at Yuanta Securities. “If it does, it’s got to be prepared to take on some of Palm’s losses and may have to see at least a few more quarters of losses from them.”

Source: Reuters via Engadget

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