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Comment PalmSource was NOT spun off in 2005 (Score 3, Informative) 197

Palm separated into hardware and software divisions in 2002 and split in 2003. Last year it seemed like Palm (the hardware company) was trying to buy back PalmSource (the software company), but they were beaten to it. The split happened originally because it seemed like it would most benefit the software side as the Palm OS could be licensed to multiple hardware vendors. Now Palm is the only major company using the Palm OS and the platform is hurting. The next Palm OS is supposed to be built on top of Linux but from the recent news it seems that the project has not yet gotten off the ground. There was a lot of comparison between this strategy and Apple's original strategy to transition to OS X. The main difference between Palm and Apple here is that Apple controlled both the hardware and software and was able to effectively control the entire platform while right now the hardware and software of the Palm platform is fragmented. I think everyone is realizing that the split was a terrible idea and that complete integration would have been ideal.

From Wikipedia:

In January 2002, Palm, Inc. set up a wholely owned subsidiary to develop and license Palm OS, which was named PalmSource in February. In October 2003, PalmSource was spun off from Palm as an independent company, and Palm renamed itself palmOne. palmOne and PalmSource set up a holding company that owned the Palm trademark.

...

In May 2005, palmOne purchased PalmSource's share of the Palm trademark and two months later renamed itself Palm, Inc. As part of the agreement, palmOne granted PalmSource certain rights to Palm trademarks to PalmSource and licensees for a four-year transition period. Later that year, ACCESS, which specializes in mobile and embedded web browser technologies, including NetFront, acquired PalmSource for US$324 million. In October 2006, PalmSource announced that it would rename itself to ACCESS, to match its parent company's name.

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