If things keep going the way they’re going, one of these buyout rumors from Nokia, Dell or someone else is eventually going to come true. The company was fresh off announcing a public offering of its common stock and today it increased the number of shares being offered to 20,000,000 at $16.25 per share. That would be $313.1 million in proceeds and a much needed injection of cash for a company who needs to start pumping out WebOS phones.

And THAT is why Palm could ultimately be sold to an incredibly high bidder – an overwhelming amount of cash and an eager parent company could help WebOS compete in the near future whereas the current limited resources are stifling growth and progress. I say that partially out of anxiety, afterall the first Android phone wasn’t followed up for many months after. But even a year ago the smartphone market was much, much different than it is today.

There are two main problems with selling the whole farm:

1. Palm will be selling based on the POTENTIAL of the company, something few purchasers/investors will be interested in negotiating
2. Palm won’t sell the company unless they truly feel the company can embrace the ideas and culture that created WebOS and lifted Palm out of the dark.

Here is the full press release from the Palm Investor Blog:

SUNNYVALE, Calif., Sep 23, 2009 (BUSINESS WIRE) — Palm, Inc. (NASDAQ:PALM) today announced that it increased the size of its previously announced public offering of common stock to 20,000,000 shares. The public offering price will be $16.25 per share. The underwriters will also have a 30-day over-allotment option to purchase 3,000,000 additional shares of common stock from Palm at the public offering price. Upon the closing of the offering, Palm will receive net proceeds of approximately $313.1 million, assuming no exercise of the underwriters’ over-allotment option. Palm expects to use the proceeds for working capital and general corporate purposes.

The offering is being made solely by means of a prospectus supplement and accompanying prospectus. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

Goldman, Sachs & Co. and J.P. Morgan Securities, Inc. are serving as the joint bookrunners of this offering and RBC Capital Markets is serving as co-manager. A copy of the prospectus supplement and accompanying prospectus relating to this offering may be obtained by contacting Goldman, Sachs & Co., 85 Broad Street, New York, NY 10004, Attn: Prospectus Department, by calling 866-…, or by emailing prospectus-ny@ny.email.gs.com, or from J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11425 Attn: Chase Distribution & Support Service, Northeast Statement Processing, by calling 718-….

Should Palm stay or should Palm go now?