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Pondering Nokia Buying Palm

Thu Sep 24, 2009 - 3:50 PM EDT - By Annie Latham




Darcy Travlos is an independent stock analyst posted an Intelligent Investing piece that appeared at Forbes.com, which talked about the reasons why Nokia may be interested in buying Palm.


Here are some excerpts:

Price -- Nokia is not a stingy buyer. Nearly two years ago to the day, Nokia announced its $8.1 billion acquisition of Navteq. The acquisition price was an 80% premium to where the stock had traded just six months prior.
>>> Could Nokia see a similar strategic rationale for acquiring Palm?

Slot in U.S. Market -- The acquisition would provide Nokia a top slot in the U.S. market it hasn't been able to crack, despite Nokia's reach, brand and resources. Palm appears to have the more momentum and buzz, at least for now.

Nokia would get Palm's DNA -- Historically, Palm has done two things really well. First, it has been effective at changing users' behaviors, as witnessed by the ubiquitous electronic calendar. Second, Palm has been effective at delivering stylized consumer electronics to the market at the price points acceptable for adoption.

The story goes on to discuss why it would be a win-win for Nokia and Palm.

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