This is an interesting case of he-said/she-said! At a TechCrunch event called TechCrunch 50 where up and coming startups share the limelight for a day, a company called CitySourced had some interesting things to say about their WebOS application:

1 minute 40 second in. That’s right. He suggested Palm his paying his company to build WebOS apps. Seems like a desperate move, doesn’t it? Not exactly seeing as how Google has an App Development Contest and Apple has an iPhone fund for development… but in this case it does seem like a desperate measure move.

John Paczowski from AllThingsD reported something much different. He spoke to sources inside Palm who dismissed this claim as “Rubbish”.

So which is it? Does money talk or is the talk rubbish? Probably a grey area combination of the two but we would be glad to know the details. Spill the beans!