Rumor: Nokia Buying Palm? I Don’t Think So

Buyout and merger speculations are always fun to watch from the outside (not usually as much fun from the inside). This week’s big rumor appears to be (from Reuters)…

Palm shares rise on short covering, Nokia talk

Palm’s entire future currently depends on the success of the Pre (ok, but not explosive so far) and Pixi. Palm probably has a year or so of cash reserves to burn through. A white knight rescuer probably looks pretty good to them right now.

Personally, I think it is just talk. But, here’s some pros and cons that come to mind…

PROS
– Another Linux-based mobile platform to complement Nokia’s existing Linux platform
– Provides foot-in-the-door to Sprint and, perhaps, other U.S. wireless carriers

CONS
– Another Linux-based mobile platform to confuse Nokia’s customers
– Splits developers’ resources
– No real synergy with existing Nokia platforms and products
– Palm is a potential drain on Nokia’s own cash reserves