{"id":546187,"date":"2010-04-28T16:39:48","date_gmt":"2010-04-28T20:39:48","guid":{"rendered":"http:\/\/wmpoweruser.com\/?p=15820"},"modified":"2010-04-28T16:39:48","modified_gmt":"2010-04-28T20:39:48","slug":"hp-buys-palm","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/546187","title":{"rendered":"HP (?!?) buys Palm"},"content":{"rendered":"

\"hppalm\"Press Release<\/strong>: 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. The transaction has been approved by the HP and Palm boards of directors.<\/p>\n

The combination of HP\u2019s global scale and financial strength with Palm\u2019s unparalleled webOS platform will enhance HP\u2019s ability to participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets. Palm\u2019s unique webOS will allow HP to take advantage of features such as true multitasking and always up-to-date information sharing across applications.<\/p>\n

\u201cPalm\u2019s innovative operating system provides an ideal platform to expand HP\u2019s mobility strategy and create a unique HP experience spanning multiple mobile connected devices,\u201d said Todd Bradley, executive vice president, Personal Systems Group, HP. \u201cAnd, 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.\u201d<\/p>\n

\u201cWe\u2019re thrilled by HP\u2019s vote of confidence in Palm\u2019s technological leadership, which delivered Palm webOS and iconic products such as the Palm Pre. HP\u2019s longstanding culture of innovation, scale and global operating resources make it the perfect partner to rapidly accelerate the growth of webOS,\u201d said Jon Rubinstein, chairman and chief executive officer, Palm. \u201cWe look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners.\u201d<\/p>\n

Under the terms of the merger agreement, Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger. The merger consideration takes into account the updated guidance and other financial information being released by Palm this afternoon. The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Palm\u2019s stockholders. The transaction is expected to close during HP\u2019s third fiscal quarter ending July 31, 2010.<\/p>\n

Palm\u2019s current chairman and CEO, Jon Rubinstein, is expected to remain with the company.<\/p>\n

Comment<\/strong>: <\/p>\n

Of all the companies that were posited as possible suitors, HP has never been high on the list. HP has long been a Windows Mobile licensee, and has recently dabbled in Android. They are also a confirmed Windows Phone 7<\/a> OEM.  The details above appear to indicate that Palm will continue to run largely independently, which may limit the synergies Palm can extract from the union.<\/p>\n

What do our readers think of this dramatic move? Let us know in the comments below.<\/p>\n


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