Mobile devices Toolkit

LG deal boosts PalmSource's outlook

Dinesh C Sharma CNET News.com

Published: 07 Jul 2005 11:25 BST

PalmSource on Wednesday announced that Korean giant LG Electronics has signed a deal to license the Palm operating system globally.

Under the agreement, LG can develop and market smartphones based on the Palm OS, the company said.

The license could help the software maker stay afloat. Faced with competition from Microsoft and other software makers, PalmSource has been struggling to win new licensees. Last week, it announced that it would restructure by cutting 16 percent of its staff in the United States.

"The flexible, open and powerful nature of Palm OS is an ideal match for our industry-leading mobile handsets. We believe our customers will appreciate the new Palm Powered phones we will develop and distribute," Skott Ahn, executive vice-president of LG Electronics, said in a statement.

Financial terms of the deal were not released.

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