HP buys Palm for $1.2 Billion

HP said on Wednesday that it had entered into an agreement to purchase Palm for $1.2 Billion.

In a press release issued by HP, the company said the acquisition would allow HP to "participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets." HP plans to take advantage of WebOS by using the multitasking features and always up-to-date information sharing across applications.

“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,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “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.”

Palm’s current chairman and CEO, Jon Rubinstein, is expected to remain with the company and the deal is expected to close during HP’s third fiscal quarter ending July 31, 2010.

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Very interesting news to say the least. There's rumour also now over at PreCentral that they're going to be heavily investing in R&D and Marketting, WebOS is a blinding bit of software that really does work well for me, I've never come across such intuitive design, and I've used all the other major phones on the market (although obviously not WP7 which I think looks awesome too!)

Let me make sure im on the same page as everyone with this. We can all agree that WebOS is great(i have a palm pre and love it), its just that palm didnt have enough marketing/power/money behind it to really bring it into peoples hands. Its not that webOS lacks anything, its just palm couldnt push it like a bigger company could.

yey i will continue to get support for my pre! it'll be interesting to see what they can come up with, mabe a new HP slate running webOS and plenty more features for the current mobiles.

I was really hoping for a RIM takeover of Palm, but RIM is so high and mighty that they don't need an OS change... Oh well.

Saw that one coming! HP has been wanting to get into this game for a while now.

The IP that Palm holds is a great start for them along with WebOS which has so much more potential. HP has the manufacturing know how and can integrate it into their current productions lines down the road.

It's always good to see another player in the game. The market is big and they all can make money from this ever expanding market.

Glad to see someone with some pockets picked up Palm... hopefully now Palm/HP can put together some nice hardware to better serve WebOS and get more developers interested..

pielor said,
hate HP, may they go bankrupt!

Why?, did they kick your kitty. or you just had to vent your hatred for something, or someone.

pielor said,
hate HP, may they go bankrupt!

HP has a pretty deep history, if you look into it. And no nazi connections! So that's a plus.

Pam14160 said,

Why?, did they kick your kitty. or you just had to vent your hatred for something, or someone.

Well, I can't speak for pielor here, but I've had several HP's over the years, and the reliability was horrendous (And according to reliability reports over the last few years, they've kept themselves at the bottom here too)... So that's my issue with HP...

M_Lyons10 said,

Well, I can't speak for pielor here, but I've had several HP's over the years, and the reliability was horrendous (And according to reliability reports over the last few years, they've kept themselves at the bottom here too)... So that's my issue with HP...


Yet there still the number one computer manufacturing company in the world. . .go figure.

wow, i think this is great news for HP, they have always wanted into the smartphone business...now that a major corp is backing Web OS...lets see it take off..

wow that is suprising, although looking back at HP's history it's an arena they have always wanted to get into, i think HP are trying to push forward and become more mainstream like dell and apple, even more so than they have before.

As they said in the 6 million dollar man, they have the technology.

I do like HP hardware, i hope they are coming back big!

REM2000 said,
wow that is suprising, although looking back at HP's history it's an arena they have always wanted to get into, i think HP are trying to push forward and become more mainstream like dell and apple, even more so than they have before.

As they said in the 6 million dollar man, they have the technology.

I do like HP hardware, i hope they are coming back big!

HP is making a come back. Seems like 5 years ago their laptops looked and felt as cheep as the $60 inkjet printers they were giving away with them. Now their laptops look like solid builds.

Correct me if I am wrong, but isn't HP already the top selling computer manufacture in the world today; followed by Dell. . .

roadwarrior said,

Actually, HP is followed by Acer, then Dell, and Acer's growth rate (if sustained) could put it on top by this time next year.
http://www.gartner.com/it/page.jsp?id=1353330

Interesting report... I can't imagine it's correct though. Apples for Apples (Laptops), Acer ships worldwide and has a stranglehold on most of the Asian markets, while HP is primarily Europe and the US. This Gartner report must include Desktops or something as well that Acer doesn't do a lot of business with, skewing the numbers a bit.

vaximily said,

This Gartner report must include Desktops or something as well that Acer doesn't do a lot of business with, skewing the numbers a bit.

How is it "skewing the numbers" when the article is talking about total PC shipments? And yes, this article includes desktop and mobile PCs:

Note: Data includes desk-based PCs and mobile PCs.

WebOS looks more consumer-friendly than WP7 so this could be great for HP.
I think HP should do this:
- Android directed to the tweakers
- WebOS directed to the consumers
- WP7 directed to businesses

3 Operating Systems, 3 Choices.

Damian. said,
WebOS looks more consumer-friendly than WP7 so this could be great for HP.
I think HP should do this:
- Android directed to the tweakers
- WebOS directed to the consumers
- WP7 directed to businesses

3 Operating Systems, 3 Choices.

- Android directed to the tweakers
- WebOS directed to businesses
- WP7 directed to the consumers

*Fixed*

Damian. said,

Why is that?

+1... I don't see how WP7 is more geared toward Consumers than Business, or how WebOS is more geared toward Business than Consumers... just the opposite in fact.

Damian. said,
WebOS looks more consumer-friendly than WP7 so this could be great for HP.
I think HP should do this:
- Android directed to the tweakers
- WebOS directed to the consumers
- WP7 directed to businesses

3 Operating Systems, 3 Choices.

I think the key here will be that they can offer all 3 OS's across the same hardware... I despise finding a phone that I love with an Operating System that I hate.

Damian. said,

Why is that?

Mostly because I really cannot see WP7 as a productive OS.
We use a software on our WM phones at work, and it will require a complete re-write to work in WP7. really don't see this happening

Damian. said,
WebOS looks more consumer-friendly than WP7 so this could be great for HP.
I think HP should do this:
- Android directed to the tweakers
- WebOS directed to the consumers
- WP7 directed to businesses

3 Operating Systems, 3 Choices.

WebOS isn't any more directed at consumers than the other 2 are. Why fragment your devices based on OS? And also, why have Android around or WP7 if you have your own OS? HP would push devices with WebOS way more than any Android device now. And I never expected HP to make any WP7 phones either, a tablet/slate with CE7/WP7 maybe, at the most.

Interesting to see what becomes of this. IMO when HP acquired Compaq back in 2002 (I think) we saw some of the best iPaq PocketPC models as a result of the merger. Hopefully this will be a repeat.

This seems like good news on the surface but I'm not so sure. Like a few others have said HP does have a history of seemingly hiding brands they acquire in the background and pretty much doing away with them all together eventually. I use as an example the acquisition of the VooDooPC brand. That brand and the nice systems they had is pretty much dead now.

KaneHusky said,
I don't foresee anything positive coming out of this, unfortunately.

Neither do I. A shame really, because Palm did have a lot of good going for them...

dimithrak said,
Wow, didnt realize alot of people don't like HP around here... .

A long standing history of being at the bottom of reliability reports will do that...

MarenLBC said,
This is good news. WebOS on some decent hardware will give everyone a rum for their money.

...and what would HP's involvement have to do with that?

MarenLBC said,
This is good news. WebOS on some decent hardware will give everyone a rum for their money.

I would very like some RUM thank you

Melfster said,
Hp has a history of screwing over brands I don't think this is going to end well.

They also had a history of illegally wiretapping phones and bugging executive level conferences and meetings... things change.

vaximily said,

They also had a history of illegally wiretapping phones and bugging executive level conferences and meetings... things change.


Source?

Melfster said,
Hp has a history of screwing over brands I don't think this is going to end well.

I agree. They have a very bad track record in this department...

Elliott said,
Wow. Did not foresee HP buying Palm. I thought for sure somebody like HTC would wanna pick up WebOS.

Dont think they can afford it, defending themselves against Apple

Stetson said,

Palm's IP might have actually helped HTC.

HTC declined to buy Palm after they got access to the company's record books and saw the amount of loss Palm were making year after year.

Edited by -Razorfold, Apr 29 2010, 1:38am :

Beastage said,
Good news... that is all.

As an iPhone and BlackBerry user I do feel that it's good to have a fourth player in the industry (in the US that is). But does anyone think that HP paid too much for Palm? It seems to me that with no rumors of HTC or Apple buying Palm, then there isn't much worth buying. I'm really curious to see how HP can keep WebOS alive. I don't think consumers just didn't buy the Pre and Pixi because it was made by Palm.

asdavis10 said,

As an iPhone and BlackBerry user I do feel that it's good to have a fourth player in the industry (in the US that is). But does anyone think that HP paid too much for Palm? It seems to me that with no rumors of HTC or Apple buying Palm, then there isn't much worth buying. I'm really curious to see how HP can keep WebOS alive. I don't think consumers just didn't buy the Pre and Pixi because it was made by Palm.


I don't think they over paid as seeing they also got there patents with buying them. I guessed HP would buy them when all that speculation was going on about htc buying them

asdavis10 said,

As an iPhone and BlackBerry user I do feel that it's good to have a fourth player in the industry (in the US that is). But does anyone think that HP paid too much for Palm? It seems to me that with no rumors of HTC or Apple buying Palm, then there isn't much worth buying. I'm really curious to see how HP can keep WebOS alive. I don't think consumers just didn't buy the Pre and Pixi because it was made by Palm.

I think that Palm had a pretty valuable patent portfolio in addition to a very talented design group... The Palm phones were nice looking and solid... Personally, I fear more for what HP will do to Palm, as HP isn't really a quality outfit...