HP Acquires Palm for $1.2 Billion
Hewlett-Packard has decided to buy out troubled handheld pioneer Palm.
For $1.2 billion, or $5.70 per share, Palm is changing hands to HP. The transaction should be completed by the end of July. HP says that it puts a lot of value on Palm's developed WebOS, a Linux for mobile devices, as "without equal." The operating system will afford HP competitive advantages in the fought over mobile market and promises "true multitasking" and "up-to-date information sharing across applications." Palm has two devices with WebOS on the market with its Pre and Pix smartphones. HP is represented by its iPAQ smartphones that are based on the Windows Mobile platform.
HP wants to use its size and financial clout to "participate more aggressively" in the smartphone market. Palm's CEO John Rubinstein should stay on at HP.
Palm Inc. out of Sunnyvale CA had undergone a series of quarterly upsets culminating in takeover rumors. In the last few months Palm has been showing activities in the community, products, and personnel changes related to WebOS.
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