HP buys Palm for $1.2 billion

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