Motorola has been tipped as a possible buyer for Palm this week with a possible price tag of $2 billion CNBC said on Wednesday.
Some industry insiders are suggesting the move is because Motorola is worried the effect of Apple’s iPhone will have on its markets.
"The partnership of Moto's consumer focus handsets and Palms smartphones would work very nicely together", an industry insider told Pocket-lint.
Palm who make the Treo Smartphone would be an ideal match for Motorola, who apart from a few models has many stuck to consumer friendly phones like the Motorola Razr range.
Earlier this week Nokia and up to three other potential bidders were reported to be interested in the sale
Inititally reported on Unstrung.com the site quoted unidentified sources close to the situation as saying Palm's management preferred a private equity buyer.
Palm said it does not comment on rumour or speculation.
We will keep you posted.