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Palm + Handspring = PalmSpring?

I heard the news today, oh boy...

At Brighthand, c|net, InfoSync World, and at The Register. As always, there's excellent commentary on the announced merger from Craig Froehle at GearBits too.

What an interesting turn. Hawkins and Dubinsky head back to Palm. My gut impression: this is a good move. Might be just what both companies needed about now.

More commentary after I've brewed on this for a while...

Well, after some thought and a little discussion with fellow Palm users here's a little commentary on the proposed Palm-Handspring merger:

I think it's a good thing in general, from the point of view that it's better to have Palm and Handspring merge than to see Handspring go under. I believe Handspring is in a tough spot financially and seems to be "betting the farm" more or less on their Treo line.

Handhelds became a commodity, so they've moved away from that space and into the more lucrative and more difficult path of communicators. The Treo is a fine machine with great PDA/Phone integration, but with competitors like Nokia, Motorola, Samsung, Kyocera and Microsoft, they do have some serious competition.

I think the merger of Palm and Handspring makes them a more well-rounded company, better able to deal with both Sony and Microsoft. The coming new name is probably something they will wish wasn't part of the deal. I'd bet the Palm name and image around the world is worth quite alot.

The Register story suggests that the deal is a Handspring bail-out effort. Handspring does have to pay down a big lease on a building, signed back in the Internet boom days. The Palm deal will help with this for sure.

The worst part of the deal will be the layoffs. It'll be too bad that some overlap of staff will have to be trimmed.

Might have more tomorrow... or maybe not. I'm sure this deal has been analyzed to death by now. :-)

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