Rubinstein: Palm can survive alone and return to profitability

Rubinstein: Palm can survive alone and return to profitability
Palm CEO Jon Rubinstein shot down all of the takeover theories that have circulated around the company in the last few weeks. The exec points to the $592 million in cash that Palm has and says that the money will give Palm some breathing space to keep going forward. While that is a lot of dough, to put it in perspective, Apple has $40 billion in cash and short term investments on its balance sheet which gives them the ability to consider an $8 billion purchase of ARM as we reported yesterday. Rubinstein says that Palm has a pipeline of great phones in development although no details were forthcoming from the executive. He did say that Palm does have a plan to follow to return to profitability. The CEO added that the company is open to licensing the well received webOS operating system or forming a "strategic alliance" with another company. Recent rumors have linked Palm to buyout offers from China's Huawei and Taiwan based HTC. Even though he says that Palm can survive alone, Rubinstein did tell the financial paper that he would take a look at being acquired if all other options fail. Analysts at RBC Capital Markets believe that the company-with a current market cap of $820 million, could attract bids of $2-3 billion based on the attractiveness of webOS to another manufacturer.

source:FinancialTimes via electronista

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15 Comments

1. herbiederb

Posts: 275; Member since: Jan 28, 2010

LOL @ title. Someone please buy them and put them out of their misery.

4. oddmanout

Posts: 443; Member since: May 22, 2009

I actually like webOS more than a lot of operating systems. Its better than the iPhone OS(even with multitasking) and I'd actually prefer it over android or WM. They just had a bad experience with the pre (which overall isn't a bad phone just not the best). I'm sure that the C40 or whatever palm has hiding will sell much better. There's no reason to have or show any hate towards them... they're a small company that made a bad move and now they're moving on. Its just business... I don't see how it affects you to the point where you feel the need to want to see them "out of their misery." lol. Its not that serious, and palm has nothing to do with you... so how about you keep your childish idiotic comments to yourself because they only make you look like a jackass. :)

5. BlackberryUser

Posts: 609; Member since: Jun 26, 2009

Odd, I was on board with you till the end of your rant. Palm has faced many challenges and lost position in the industry over the years. Although you're right that they should be given ever chance to recover, people are entitled to their opinions. No matter how poorly they're stated. I think Palm can pull this off and it sounds like their on the right track by licensing their WebOS software. Why not taking something that works and allow other manufacturers to market and sell it for you.

8. remixfa

Posts: 14605; Member since: Dec 19, 2008

Opening their OS to other companies will be their savior. I havent had a chance to play with the OS but everyone who has seems to like it. If its that good ,then letting HTC, LG, Sammy, and the rest source it out will only increase visibility and find designs/horsepower that everyone likes. Where would android be if it was only google producing phones? Look how stagnant the iphone has been over the years. (its outdated ibots, get over it!). Immagine the monster devices that could have been made had Apple allowed other companies to design phones for it.

11. Greg26

Posts: 1; Member since: Apr 23, 2010

I agree that Web OS is a better operating system than the others and I think RIM should purchase Palm and use Web OS and apply there email push tech into that because Blackberry OS needs a major update.

13. PapaJay224

Posts: 866; Member since: Feb 08, 2009

Heres an Idea Palm should try and stay a float by offering Sprint all their flagship devices they come up with so no body buys them and then both comapnies can kick sand. Good Job Palm, some times you shouldnt go with your gut, you should go with a company that can market your phone. I dont think I ever saw a Palm Pre Commercial offered from Sprint, But I bet everone has seen at least 1 commercial about the Droid. Point made.

2. htc_prep

Posts: 303; Member since: Oct 09, 2009

Keep in mind Apple doesn't just stick to producing smart phones. So of course theyre going to have higher revenue...

3. phone333

Posts: 331; Member since: Feb 04, 2009

WebOS on HTC phones would be nice.

6. BlackberryUser

Posts: 609; Member since: Jun 26, 2009

I agree, but like i said before I wouldn't want to see HTC drop Android phones.

10. htc_prep

Posts: 303; Member since: Oct 09, 2009

Integrated... but not the prevalent OS

7. BlackberryUser

Posts: 609; Member since: Jun 26, 2009

According to this article the decision not to sell played out differently. They say Lenova is still interested, but HTC and others declined. http://www.reuters.com/article/idUSTRE63M1UA20100423

9. Jyakotu

Posts: 867; Member since: Dec 12, 2008

webOS is such a great mobile operating system. People are just ready for Palm to make something new, in terms of hardware.

12. rwolf1984

Posts: 536; Member since: Jun 06, 2009

I like WebOS software, the Verizon devices and the (presumably the upcoming AT&T) are much better than the Sprint device. I do not care for the form factor of the Palm devices. WebOS got multi-tasking on a phone right. If Android and iPhone executed half as good as Palm on their upcoming devices and future software updates I would probably have multiple orgasms...

14. wade1968

Posts: 224; Member since: Apr 12, 2010

Jon Rubinstein ARGH STOP TALKING ABOUT TURNING PALM AROUND AND JUST DO IT.

15. stuntz

Posts: 178; Member since: Dec 19, 2008

ohh good idea, now just lose the cap locks!

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