The Seattle Times: Microsoft: Palm, Microsoft forge peace with handheld: "But Palm and Microsoft said yesterday the sale is only one reason why the device is coming out now. The two companies have been working together for much longer, even before Palm acquired Handspring, the original maker of the Treo.
The close relationship even led Sunnyvale, Calif.-based Palm to participate in the development of Microsoft's new Windows Mobile 5.0 operating system, which was released in May.
'We have lusted after some of the things they did well, and we've done some things well, too,' Gates said. 'It's wonderful to see that coming together.'"