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.
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…