Bloomberg reports that Palm has been working with Goldman Sachs and Qatalyst Partners to find a buyer for the company.

HTC and Lenovo have both been mentioned as possible buyers. Dell is said to have also looked at buying Palm but ultimately decided against it.

Palm has been struggling for several years and I’m sad to say that, unless they find a suitable buyer, this could be the end. Palm has resorted to some desperate moves as of late, even offering their flagship device on Verizon for $49.99 with a buy-one-get-one-free deal.

So, who should buy Palm? As much as HTC would benefit from Palm’s patent portfolio in their lawsuit with Apple, I really think Om Malik was right when he said that Motorla should buy Palm. What Motorola needs is to differentiate. They shouldn’t just be another Windows Phone 7 or Android handset maker. They make good enough hardware, but why would anyone buy a Motorola handset over the Google branded Nexus One? I think webOS should be the answer.