Is Research In Motion (RIMM) considering a bid for Palm (PALM)?
The Toronto Globe & Mail writes this morning that “there’s a school of thought” that RIMM “must break with its conservative past” and make a $1 billion bid for Palm.
The story asserts that, while previous reports had HTC and Lenovo as potential buyers for Palm, “sources at investment banks said the only potential bidder to show serious interest in Palm was RIMM.”
The theory is that RIMM would roll out Palm’s WebOS software in the next generation of RIMM mobile devices. Nice theory, except that RIM yesterday did a well-received demo of the latest version of the BlackBerry OS, and said it will start rolling out the new software in the third quarter. So why does it need WebOS?
You never know…but I’m skeptical. I’d also note that a $1 billion bid would be a take-under, once you factor in the company’s outstanding debt and the preferred shares held by Elevation Partners.
Palm is up 6 cents, or 1.2%, to $4.88.
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