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Palm\u2019s got potential — M&A potential. <\/p>\n<\/p>\n
Palm\u2019s got potential — M&A potential. <\/p>\n
That\u2019s the word from Deutsche Bank analyst Jonathan Goldberg who believes there\u2019s a good chance the company might be acquired in the next two years. <\/p>\n
In a note to clients this week, Goldberg argues that Palm (PALM), with its new Verizon (VZ) distribution deal in hand and nearly nearly 1,300 webOS applications in its App Catalog, is building the sort of market momentum that would be attractive to a larger company looking to break into the mobile device market — or shake it up.<\/p>\n
\u201cBig consumer electronics companies need some way to participate in the market and most of them have failed to come up with a successful strategy,\u201d Goldberg writes. \u201cStreet consensus appears to be that Palm will be acquired in the next year or two, which given the current environment we think could be a reasonable possibility.\u201d<\/p>\n
But to make it a reality, Palm must first demonstrate its viability. \u201cWe think Palm needs to prove it can be a stand-alone entity, a viable business in its own right. We clearly think that it can.\u201d<\/p>\n
Clearly. Goldberg believes Palm will likely sell 600k WebOS devices through Verizon this quarter and he says that Palm\u2019s App Catalog, whose applications already outnumber those in Nokia and Microsoft\u2019s stores, will soon do the same to those in RIM\u2019s App World and possibly the Android Market as well. That would certainly be enough to elicit an acquisitive glance from a company with mobile ambitions — just who that would be, Goldberg doesn\u2019t speculate<\/p>\n
Of course, Goldberg is far from the first analyst to posit Palm as a takeover target. I\u2019ve written here before about speculation<\/a> that the company might be acquired by Dell<\/a> or Nokia<\/a>.<\/p>\n Buy This Item: [Click here to buy this item]<\/span><\/a><\/p>\n