Palm to Acquire Be IP, Tech Assets

In a stock deal valued at $11 million, Be, Inc. today announced plans to sell its intellectual property and technology assets to handheld computer maker Palm, Inc. Be, creator of the fledgling BeIA and BeOS multimedia operating systems, confirmed intentions to sell the company in April after news that it was almost out of cash. Palm will make use of Be's embedded technology to better compete in the multimedia space with rivals such as Microsoft.

"This move will help us expand the Palm OS platform into broader markets," Palm CEO Carl Yankowski said in a prepared statement.

Possibly signifying plans to file suit against past competitors, Be will continue to exist and retain its cash and "rights to assert and bring certain claims and causes of action, including under antitrust laws." The company intends to liquidate its stock in Palm almost immediately to pay creditors and shareholders.

Today's announcement follows rumors earlier this month that Be had found a buyer. At the time, company chairman and CEO Jean-Louis Gassee told BetaNews, "As stated on previous occasions, we have a simple policy, we don't comment on rumors, see past coumns from yours truly on the this very topic. This said, your question is entirely legitimate, we aprreciate the interest and support and we'll speak up when appropriate."

Gassee will temporarily aid Palm with its plans to split its hardware and OS divisions. 50 of the 57 the remaining Be employees will be hired by Palm when the deal closes later this year.

A sad day for aficionados of the BeOS, Palm has stated it will not continue development of the alternative multimedia desktop OS. It is unclear what will happen to Sony's eVilla OS, which was created jointly with Be, but Sony claims support will continue one way or another.