HTC, a leading maker of smartphones and the No. 5 maker of cell phones, is not interested in taking over troubled Palm. According to a source, HTC did not think that the Palm team could really revolutionize the HTC development efforts.
"There just weren't enough synergies to take the deal forward," said the source with direct knowledge of the matter, who declined to be named because the deal had not yet been made public, in a conversation with Reuters news-agency.
Obviously, almost any hardware and software company that operates on the market of mobile devices would benefit from the acquisition of Palm as it would get a vast patents portfolio along with a pool of engineers. But analysts claim that acquisition of Palm is risky since the latter has been in red for several quarters now.
"It's a good thing that HTC is dropping it because Palm has been losing money for a while now, and when you look at the two companies, they share such a similar profile," said Lu Chialin, an analyst at Macquarie Securities.
According to Morgan Stanley, Nokia and Motorola are among mobile-phone makers that would gain the most strategic benefit from taking over Palm. Palm may also be a “strategic fit” for Research In Motion, but there also others, including Dell, Lenovo Group, LG Electronics, Microsoft Corp. and Samsung Electronics, who can benefit from acquisition of Palm.
According to Reuters’ estimates, Lenovo is the most likely bidder for Palm now.