Palm Inc. has announced it is paying $44 million to Access Systems Americas (formerly PalmSource, Inc.) for a perpetual license to the source code for Palm OS Garnet, the version of the Palm operating system used in several Palm handheld computer and smartphones, including the entries in the company’s Treo line which aren’t running Windows Mobile. And here’s a neat trick: Palm isn’t making any additional license fees over time, and the company won’t be paying a cent until its third fiscal quarter of 2007, at which pont it will make a single payment to Access Systems which will be expensed out over the next several years.
Tag Archive: PalmSource
Japan’s Access Buys PalmSource for $324 Mln
Japanese software maker Access Co. (Japanese site; U.S. site) announced today it is buying U.S.-based PalmSource Inc. for $324 million. PalmSource will become a wholly-owned subsidiary of Access and will significantly broaden the company’s software products for mobile phones and PDAs.
PalmSource develops the Palm OS, the operating system used in millions of Palm and Palm-compatible devices, including the Zire and Tungsten handheld PDAs and the Treo smartphones. With the acquisition, Access also gains access to Linux development resources stemming from PalmSource’s previous acquisition of China’s Mobilesoft. Toru Arakawa, CEO of Access, said "By combining Access’s robust NetFront browser platform and its proven business relationships with PalmSource’s advanced operating system, application portfolio, user interface and developer communities, we will be able to produce a comprehensive yet flexible solution for the mobile market."
PalmOne Buys Back Palm Name
The brand had been co-owned by the two companies since the October 2003 spin-off of PalmSource from Palm, Inc.
palmOne will pay PalmSource $30 million for PalmSource’s 55 percent share of the Palm Trademark Holding Company. Payment will be made ininstallments over 3.5 years. palmOne will change its company name to Palm, Inc. later this year. As part of the agreement, palmOne has granted PalmSource certain rights to Palm trademarks forPalmSource and its licensees for a four-year transition period.
PalmSource CEO Calls it Quits
“Nagel has been CEO of the company since December 2001. PalmSource develops the Palm OS for mobile devices and spun off from Palm. Inc. in 2003 at about the same time as palmOne spun off. WhilePalmSource develops the Palm OS, palmOne develops mobile devices such as the Treo smartphone and the recently-released LifeDrive PDA.
No reason was given for the resignation, although the company said in a statement that Nagel will serve in an advisory capacity until mid-June. He will be temporarily replaced by Patrick McVeigh, who is currently PalmSource’s senior vice president for worldwide licensing while the company’s board initiates a search for a permanent replacement. “
PalmSource spin-off approved
The transactions are expected to close later today, and two new leadership companies are expected to emerge and begin trading tomorrow on the Nasdaq stock market.
At Palm’s Annual Stockholders Meeting today, stockholders approved the spin-off of PalmSource, Inc., provider of the world’s leading operating system platform for mobile computing and communications, from Palm, Inc. Palm will distribute all the shares of PalmSource it owns (approximately 86 percent of the total) to Palm stockholders of record as of the close of business today. Those Palm stockholders will receive approximately 0.31 shares of PalmSource common stock for each share of Palm common stock they own. PalmSource common stock will trade on the Nasdaq stock market under the ticker symbol PSRC, starting tomorrow.
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