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Motorola Could Fit Palm Like a Glove

By Chris Versace

About this article:
Last night, Palm preannounced dismal results for its recently finished February quarter, with revenue far below analyst expectations and nearly 55% below what the company posted in the prior quarter. Given all the chatter and data points in the mobile-phone ecosystem year to date -- from original equipment manufacturers like Nokia that have cut forecasts and announced layoffs to suppliers that have cut their outlooks -- it is hardly surprising to see a shortfall at Palm. The double whammy for Palm is that it is once again caught in a product cycle transition. Worse, the company indicated it is "evaluating options to raise more working capital." As I ponder the fortunes of Palm, I believe one of the best outcomes for the company would be an acquisition by Motorola. This may be a play for my consolidation theme. It's no secret that I have been skeptical of...

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