HP To Buy Palm For $1.2 Billion - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
Commentary
4/28/2010
04:21 PM
Eric Ogren
Eric Ogren
Commentary
50%
50%

HP To Buy Palm For $1.2 Billion

Today HP announced that it plans to buy ailing smartphone maker Palm for the price of $1.2 billion. "We're thrilled by HP's vote of confidence in Palm's technological leadership," said Palm CEO Jon Rubsinstein

Today HP announced that it plans to buy ailing smartphone maker Palm for the price of $1.2 billion. "We're thrilled by HP's vote of confidence in Palm's technological leadership," said Palm CEO Jon RubsinsteinWell, that was fast. Speculation has been mounting that Palm would be acquired by a larger firm with a better cash position, but I doubt many expected it to happen so quickly. Today, HP announced that it bought Palm for the price of $5.70 per share, which amounts to about $1.2 billion.

In a press release, Palm CEO Jon Rubinstein 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. We look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners."

HP's two cents (well, OK, $1.2 billion) on the deal were contributed by Todd Bradley, executive vice president, Personal Systems Group. He said, "Palm's innovative operating system provides an ideal platform to expand HP's mobility strategy and create a unique HP experience spanning multiple mobile connected devices. And, Palm possesses significant IP assets and has a highly skilled team. The smartphone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market."

The acquisition has already been approved by the boards of both companies, but regulatory approval is still required. The deal is expected to close later this year.

Hopefully HP's financial and other resources will be able to turn Palm's webOS into the successful smartphone platform that it should be.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
News
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Commentary
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll