Palm Moving Ahead with Spinoff

After earlier announcing plans to create a subsidiary for its operating system, Palm on Thursday said it is looking to divide itself into separate, publicly traded companies. “We are looking to move into external separation next year,” acting CEO Eric Benhamou told CNET News.com on Thursday, shortly after the company announced that Carl Yankowski was resigning as Palm’s chief executive. The company is also looking into asking David Nagel to become the Palm CEO, while he was originally hired to be the CEO of the new Palm subsidiary — the OS division — where the Be engineers and Be’s COO Steve Sakoman would be employeed, after the buyout of Be’s IP would complete. There is a fair amount of uncertainty in the Palm land, as revenue fell a lot recently and the new PocketPC is a rival that the aged PalmOS can’t compete with anymore.

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