[CoMoDev] Re: PalmSource Purchased by Japanese
- From: David Beers <cervezas@xxxxxxxxxxxx>
- To: Mark Moss <comodev@xxxxxxxxxxxxx>
- Date: Mon, 12 Sep 2005 21:27:01 -0500
Yeah, pretty interesting stuff.
There had been some rumors about an acquisition brewing for a while and the stock started to run up back at the end of August (wish I owned shares!). But I think almost everyone was surprised that a little-known mobile browser developer named Access was the one making the deal. And also surprised by the price, which represents a whopping 83% premium over PalmSource's market capitalization prior to the buyout news.
I tend to react to the prevalent negativity about the Palm OS by making the positive case for the platforms future much of the time, but given how few mergers are really successful, even when there aren't cultural hurdles to overcome, I have my concerns about this one. Still, I'm very bullish on mobile Linux and definitely think Palm has got the right idea with making the OS a framework and app stack that rides on top of an open source Linux kernel. And Access is obviously *extremely* optimistic (to the tune of $324M) so I guess I'll just wait and see
I've posted a couple of blog entries about the acquisition here: www.pikesoft.com/blog
Pikesoft Mobile Computing
Software Anywhere blog: www.pikesoft.com/blog
On Mon, 12 Sep 2005 11:12:13 -0600, Mark Moss wrote:
> Here is a BIG FYI
> Mark Moss
> Japanese Browser Maker to Acquire PalmSource
> By Edward J. Correia
> PalmSource stock went soaring on Thursday with the news that the
> company, which develops the Palm OS, had agreed to be acquired by
> Access Company Ltd., a Japanese developer of mobile content
> delivery and Internet access software. In an all-cash deal valued
> at US$324.3 million, Access will pay $18.50 per share of PalmSource
> stock, which had been trading at around $10.
> The ink was barely dry on a deal PalmSource made late last year to
> acquire China MobileSoft, a maker of Linux-based smart phones; its
> mLinux software would form the basis for all future versions of the
> Palm OS, the company said this summer.
> According to Access CEO Toru Arakawa, it was that acquisition,
> along with the Palm OS-based mobile applications and developer
> community, that made PalmSource attractive for takeover. ?The
> acquisition of China MobileSoft provides a foundation to promote
> Linux-based devices,? he said in a statement, in which he referred
> to PalmSource software as ?an established worldwide platform.? Palm
> OS reportedly is used in more than 39 million devices and boasts a
> developer community of greater than 400,000.
> The deal is expected to close by the end of this year; neither
> company could be reached for comment.
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