Palm in talks with Huawei for acquisition?
According to Reuters, Palm and “Huawei’s investment bank” had preliminary discussions in February. The companies haven’t reached any agreement until now, and Huawei has obviously declined to comment – but it did issue the following statement: “Huawei is always open to consider opportunities that will further enhance its business development.”
Although its main business is making networking equipment, Huawei also manufactures phones, many of them being sold in Europe though partnerships with major carriers like Vodafone and T-Mobile. Snatching up Palm would allow Huawei to tap into the smartphone market – the company already makes Android smartphones, but it didn’t manage to make a strong impact on the market yet.
Reportedly, Palm’s current value is of about $1.3 billion.
Huawei had contract sales of more than $30 billion last year, and a net profit of more than $1 billion, so I assume it has the money for Palm.
Another Chinese company seen by analysts as a possible Palm buyer is ZTE, China’s second largest telecommunications equipment maker, after Huawei. Of course, in the end, any company (read: any company rich enough) could buy Palm, including HTC and Nokia.