Palm has approached Huawei Technologies about the possibility of a takeover, reports suggest. Palm suggested it was up for sale at its last - poor - results conference. Earlier this week, Palm shares jumped on reports that Goldman Sachs and Qatalyst Partners were looking for possible bidders for the firm. The firm has struggled …
"Why you'd switch from one form of low margin hardware to another...."
It's called "diversification" and makes it Look Like You're Doing Something and haven't Run Out Of Ideas to the shareholders.
When later, after taking a honking great loss on their shiny new product strategy, a business shutters / flogs off the thing and writes off the loss, it's called "focussing on our core business". Oddly enough, this is often thought to Look Like You're Doing Something too. Thus buying into something else, dabbling in it for a bit and then getting out can make a business look dynamic for quite a while without them actually having to think about it.
Huawei will soon own everything!!!
Everything that ZTE doesn't own, anyway.
The Chinese National Bank just extended their credit line to $30B, so there's no shortage of cash to buy whatever they need.
I'm off to Waterstones to buy a "Teach Yourself Mandarin" course.