Palm 'looking for a buyer' - HTC and Lenovo in the frame

Posted by Emma Woollacott

Palm has put itself up for sale and is actively looking for bids this week, according to Bloomberg.

Following the company's poor performance over the last few months, speculation has been rife that a sale was on the cards.

Sales of the company's WebOS Pre and Pixi phones have been disappointing, the WebOS operating system itself has been widely criticized, and pricing through its deal with Sprint was regarded as overly high.

It currently has just 4.3 percent of the US smartphone market, according to Gartner.

Now, sources have told Bloomberg that Palm is working with Goldman Sachs and Frank Quattrone’s Qatalyst Partners to find a buyer, and that Taiwan’s HTC and China’s Lenovo are considering making offers.

Dell is also believed to have considered making an offer for the company, but decided against. Nokia, Microsoft, Motorola and even Nintendo have also been touted as potential buyers.

Lenovo could be a good fit for Palm, and made a successes of things when it bought the ThinkPad brand from IBM. HTC might have a bit of a conflict of interest, as it's currently committed to Google's Android OS.

Palm has a market value of $870.8 million. Its stock price hit a high of over $18 last year as the Pre begaan shipping, but has lately been hanging around the $4 mark.