Seems like the previous article earlier this morning by Gibson of TheDeal.com outlining her thoughts that Palm may buy PalmSource is becoming one step closer. PalmOne has paid PalmSource $30 million for the Palm brand name, although not a complete company buy out it does seem like things are headed that way.
Shares of PalmSource jumped 15 percent to a three-month high in morning trade, while PalmOne shares rose 4 percent. PalmOne said it would change its name to Palm Inc. later this year as part of the deal, and would use the name Palm on its products. PalmSource, maker of the “Palm” operating system software used in devices made by PalmOne and other manufacturers, and PalmOne split in two in October 2003. Since then, the two companies have co-owned the Palm brand.
PalmOne will pay the $30 million over a period of three and a half years and has granted PalmSource certain rights to Palm trademarks for PalmSource and its licensees during a four-year transition period.