CNBC is reporting that a major Palm shareholder, who did not want to be identified or his stake disclosed, is expecting Motorola to acquire Palm for about $2 billion.
“They (Palm) generate a lot of cash,” the shareholder added. “Paying $2 billion in cash for a company generating $120 million in free cash flow is not a stretch. They could pay up to $25 a share and the deal would still be accretive. Accretive immediately.”
We heard a couple of days ago that Palm might be ready to sell. It was believed, however that Nokia, not Motorola had the inside track.
- Palm Not Done Getting Crushed By BlackBerry Just Yet
- Is Palm Ready To Sell?
- Verizon Had A Pretty Good Q1
- Are Enough Palm Pres Being Sold To Make It A True Contender?
- Are 2 Out Of Every 5 Palm Pre Devices Being Returned?
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I’m pulling for Motorola in this. For some reason, I’ve a feeling that Nokia would muck this up. Motorola’s getting a better idea of what needs to be done in the smartphone world, and I think this would be a great aquisition.
*acquisition, that is. My “c” key took the morning off.
It looks like today won’t be the day afterall…