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3Com bids farewell to its Palm division

In a strategic about-face, 3Com will spin off its Palm Computing division to focus on its core networking products.

 

  latest developments 

In a strategic about-face, 3Com will spin off its Palm Computing division to focus on its core networking products. But analysts question whether Palm will survive new competition, and whether 3Com can remain independent.

"There are advantages to being separate."

- Alan Kessler, president of Palm Computing

 


Without Palm, 3Com could be a merger candidate
news analysis 3Com's strategy to spin off its successful Palm Computing division is an about-face from previous Palm plans, and could rekindle speculation that 3Com is on the auction block.

See related newsmaker: Eric Benhamou Is Palm ready for the handheld challenge?
update 3Com's decision to spin off its Palm unit into an independent company heightens the scrutiny of Palm's relationship with Handspring, which is set to release its first product.

3Com spins off Palm Computing
update 3Com says it plans to sell shares of its Palm Computing subsidiary, reducing its presence in the rapidly growing consumer handheld computing market.

Previous coverage
3Com back on the rumor-go-round
3Com's stock shoots up after a financial Web site posts a rumor that the network equipment maker might sell its business to Lucent Technologies or spin off its Palm Computing unit.