<i>Journal</I> Report Confirms Rumors That Palm Is Up For Sale<i>Journal</I> Report Confirms Rumors That Palm Is Up For Sale

Last week rumors broke that Palm is looking for a buyer. Today in the Wall Street Journal those rumors were confirmed by a report.According to the Journal, Palm has hired Morgan Stanley to evaluate its "strategic" options, which include a possible acquisition deal by a larger handset maker or an investment bank. Palm is profitable and has more than $500 million in cash, making it a rich acquisition target.

Some analysts and tech pundits remain skeptical that a larger handset maker -- like Nokia, Motorola, or Samsung -- would make a deal for Palm. Industry insiders, however, point to the power of the Palm brand, especially with hard-core mobile gadget users and mobile professionals. Palm's Treo is considered by many to be the second-biggest brand with business users in the United States after RIM's BlackBerry.

Is this announcement a move by Palm to save face after it completes a merger? Or is it a sign that the company doesn't have any real buyers waiting to make a deal?