Palm Suffers Another Setback as Executive, Retail Partner Quit

From DailyTech: The financial and structural problems for Palm continue to pile up with no apparent viable outcome other than selling the company.

Palm started the week already under constant pressure, but it got worse when it was disclosed Michael Abbott, Palm Vice President of Software and Services, abandoned the company as Palm admitted it may be more difficult to find a new buyer than previously expected.

"We are concerned by the departure of Mr. Abbott, as he had principal responsibility for Palm's WebOS software, one of the company's few remaining assets," noted Lawrence Harris, CL King & Associates analyst, when speaking with Reuters.

Abbott is expected to officially leave the company by the end of the week, though it's unsure if he'll be replaced.

The double whammy caused Palm's stock to slide a further 13 percent, as Abbott was the person responsible for helping lead development of Palm's webOS.

Palm has released the Pre and Pixi over the past year, but still hasn't been able to compete with Apple, Research In Motion, HTC, and other competitors. The appeal for webOS is a driving force behind rumors of HTC and one or two other companies possibly buying the company.

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