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Palm For Sale : Will Microsoft Buy It?

Leaks do not normally happen haphazardly and the news that Palm may have put itself up for sale might have been outed by people who want to see any potential bidder foot more for Palm than it is currently worth.

Shares of the company gained 20 percent since this morning and have risen by more than 60 percent over the last week alone. So who are the potential suitors? We'll name just a few; HP, Dell, Lenovo, ZTE, Microsoft, HTC and Huawei.

We wrote an article back in March 2009, putting forward the (im)probable scenario of Microsoft buying the beleagured mobile phone network. Why would Microsoft snatch Palm?

Well, for a start, it has a well garnished portfolio of very interesting mobile patents. Businessinsider says that there might be some related to touch gestures ones which is why Apple didn't mention it in the HTC suit.

The Redmond company would get a ready made, easy to integrate company with which it has already done business in the past (Palm launched Treo Smartphones with Windows Mobile back in 2005).

There's also the fact that they would get Jonathan Rubinstein to join the company. This is the guy who helped invent the iPod; he gave Apple's Mojo back in 2001 and could do the same for Microsoft in the consumer market nearly a decade later.

Yet Microsoft buying Palm is unlikely to happen because Microsoft was never a hardware company and might envision such a venture as being too risky especially as it would put it in direct competition with its own partners like Toshiba or HTC.

Our Comments

Ironically, the article from Bloomberg came the same day as Microsoft announces a new smartphone that looks eerily like the Palm Pre. Will Microsoft bite the Palm bullet and follow Google's lead by launching its own mobile phones?

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