Palm Digital Media has merged with PalmSource.

Palm Digital Media is a publisher and distributor of eBooks for handheld computers. The company has joined PalmSource, the Palm subsidiary formed to handle the company’s PDA (personal digital assistant) operating system and associated software.

The Palm OS platform is now used by more than 66 per cent of the world’s PDA users, according to research firm IDC. Palm claims that it's the foundation for more than 21 million handhelds and smart phones.

Palm Digital Media will continue to offer Palm Reader and eBooks through its relationship with Palm OS licensees.

PalmSource said it expects to ship the final version of its new Palm OS 5 operating system in June.