Palm was once one of the most popular names in the gadget and phone world. The company had the line of PDAs that most users owned back in the day and sold popular Treo smartphones. Palm today is struggling and selling much less of its current WebOS handsets than analysts expect.

With sales down, Palm is on the ropes and entertaining all ideas to solve its woes. Early reports had rival HTC looking to purchase palm, but HTC has now stepped away from the deal.

Reports now put PC maker Lenovo at the lead of potential buyers. Palm would reportedly sell for around $1.3 billion. The purchase would give Palm an in to the US smartphone market.