Verizon to Palm: Talk to the Hand? Not So Fast
There's a report out tonight from the folks at thestreet.com that Verizon Wireless has decided not to support that other Jesus phone, namely the Palm Pre.
If t
he report is true (there are no sources named and Palm reportedly said it has never named Verizon as a potential carrier partner in the first place) it would be devastating to Pre, and would cause a schism with Palm investors who began snapping up 20 million shares yesterday at $16 and change in a critical secondary offering. They might want to ask, What did Palm know and when did it know it?
A Palm spokeswoman told me late today the company doesn't comment on rumors. At the same time, she said that Palm was reiterating its full-year 2010 guidance. Hmmm, why is that significant?
- Slideshow: Evolution of Wireless Communication
It's potentially VERY significant. Palm's fiscal year ends in May, and as recently as July, Verizon Wireless CEO Lowell McAdam said the Pre would be carried by his company. Most full-year estimates include revenue from a Verizon deal. If the Verizon deal really fell apart, would Palm take the bold step of reiterating full-year guidance?
Palm's done some quirky things in the past to be sure, but playing fast and furious with disclosures and financial regulations hasn't been one of them.
Not sure what's really going on here, but it seems a deal with Verizon is very much still part of the Palm equation. I guess we'll see what happens.
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