HP buys Palm for $1.2 billion

John Connors

April 28, 2010 4:10pm

After a few weeks of rumours a press release went out that officially stated that “HP and Palm, Inc. today announced that they have entered into a definitive agreement under which HP will purchase Palm, a provider of smartphones powered by the Palm webOS mobile operating system, at a price of $5.70 per share of Palm common stock in cash or an enterprise value of approximately $1.2 billion.”

Palm CEO Jon Rubinstein is “expected to remain with the company” said “We’re thrilled by HP’s vote of confidence in Palm’s technological leadership, which delivered Palm webOS and iconic products such as the Palm Pre. HP’s longstanding culture of innovation, scale and global operating resources make it the perfect partner to rapidly accelerate the growth of webOS”.

On Palm’s company blog they wrote that “In case you didn’t hear, we just announced a merger with a little shop down the street called HP. That little shop happens to be the world’s largest technology company, and certainly one of the most revered companies in all of tech-land. Can you say “webOS acceleration”?”

From the supporting documents it says that HP was interested in the webOS platform because it will “enable unique, integrated, connected experiences across connected mobile devices”. In addition, the reason for purchasing Palm is for the following reasons:
– Strategic and financially attractive opportunity
– Compelling combination
– World-class technology in connected mobile devices

What do you think of this partnership.. do you think it’s going to accelerate the webOS platform?

More here at HP

  • Ted Avery

    They need to give up on WebOS and integrate their pretty UIs into Android. No consumer or developer wants to invest in a completely separate OS on only a handful of phones.

  • Jason

    Wow, didn’t see that coming.

    Nokia should’ve bought Palm.

  • David

    Palm devices will not work at all where I live (on Southern Vancouver Island)as I live in a weak signal area. When I first moved here, I purchased a Palm Treo on a 3 year contract, but was forced to return it as every phone call I made dropped out.

    Having tried and tested many smart phones since, I can honestly say that the Palm devices performed the worst all.

    Blackberry and Motorola phones work best. If you live outside of a big city, I would advise to stay clear of any products made by Palm.

  • David M

    Didn’t see that coming either, maybe HP is going after Dell??

  • Barbie

    This was bound to happen!!! Neither company has come out with a… Working phone in years, trying having to sell them. Lets just hope that if the two put their thinkiing caps on they’ll get with the times and come out with a phone everyone will like, and possibly shall we say function

  • Scott S

    WebOS looks like a very promising platform but the hardware quality needs to improve.

    I love the Pre though, that phone is hot.

  • andrew Athanasopoulos

    WebOS is a very well engineered platform. They’ve gone above and beyond the capabilities of the iPhone and android phones, they just need to generate a better range of handsets that can compete with rim, iphone and android phones. when the WebOS was first released, I admit it was sluggish and buggy, but with every update that has been released, the experience that you get with it increases significantly. I’m hoping that Canada can hurry up and get the pre and pixi plus on the market.

    This move should place palm further up in the ranks. Good job.

  • J-M Roubos

    A match made in heaven!

  • ya right

    hopefully palm won’t be the same quality as hp computers because HP Computers suck!

  • CRiMiNALOGiC ®

    Well im varry Happy to hear HP and not Lennovo…

    HP is Good and had some Nice phones “in tha past”

    HP “Should” Bring Better Design & Build Quality to WebOS that is Long Over Due And Greatly Needed !!

    i wish it was HTC, But Hopefully HP wont let me down…

    Come on HP Lets see a 4 inch tablet stye WebOS Device with an On Screen or Side slide keyboard and a Better skinning of tha UI .