HP Buys Palm | webOS Nation
 
 

HP Buys Palm 163

by Dieter Bohn Wed, 28 Apr 2010 5:43 pm EDT

  HP + Palm

HP is buying Palm for $5.70 a share, or around $1.2 billion. More to come - conference call at 5pm EST - we'll be liveblogging it for sure. We have HP's Press Release after the break. The whole thing should be done by July 31st.

We're here to report on this breaking story, stay tuned. A quick read of the press release says that Jon Rubinstein will remain with the company - but it's not clear whether Palm as a brand will remain intact just yet - to say nothing of the rest of Palm's team and infrastructure. For webOS fans, the good news is that this isn't just a purchase for talent and patents, HP intends to continue on with webOS.

...keep it locked, folks.

Combination will accelerate HP’s growth within the more than $100 billion connected mobile device market

PALO ALTO and SUNNYVALE, Calif., April 28, 2010


 

HP and Palm, Inc. (NASDAQ: PALM) 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.

The combination of HP’s global scale and financial strength with Palm’s unparalleled webOS platform will enhance HP’s ability to participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets. Palm’s unique webOS will allow HP to take advantage of features such as true multitasking 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.”

“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,” said Jon Rubinstein, chairman and chief executive officer, Palm. ”We look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners.”

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’s stockholders. The transaction is expected to close during HP’s third fiscal quarter ending July 31, 2010.

Palm’s current chairman and CEO, Jon Rubinstein, is expected to remain with the company.

 

 

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163 Comments

I just hope PALM will still be a brand name. I've always bee loyal to PALM. I think HP and PALM will make a great team.

This is a beautiful day. Palm WebOS getting the recognition it deserves. Palm still the name. HP Backed basically giving them carte blanche to make the best product they can. One of you needs to come to my house and pinch me. I seriously think I am dreaming. I hope HTC has its tombstone picked out, same with Apple(at least in the smart phone department).

my Palm Pre tethered to my HP Mini...umbilical chord? Awwww...lol

my Palm Pre tethered to my HP Mini...umbilical chord? Awwww...lol

As an Employee of HP with a Palm Pre.. I feel just Happy :)

HP......

Yep they sure do have good cash flow. Why? Printers with tiny bladders. I promised myself years ago that I would NEVER buy another HP product. HORRIBLE customer service to boot.

We shall see...but I'm certain HP will be the death of any fun, or bright future when it comes to the PRE.

Trust me, the more fun you have , the more HP will charge.

Bummer, and I thought I finally had a phone I actualy wanted to keep.

Tell me. When you are looking for customer service for your Pre do you contact Palm...or Sprint? Move along....nothing to see here.
As for Fun....what I didn't realize there was happysunfuntime juice in the Pre that HP will drain right out.

Jebus.

I called Dell buying them....close but no banana.

Well this is better news then I was expecting to read. HP is a large and powerful company, that will (Hopefully) keep Palm and the WebOS alive and well. So I'm glad HP is buying Palm and not some other company that would otherwise tear the company apart like a Yahoo, or Microsoft.

As a Pre Plus owner, and an owner of a myriad of Palm devices in the past, plus a couple of the early generation Compaq Ipaq's, I'm giddy about this merger. WebOS along with HP's deep pockets and hardware expertise makes this a match made in WebOS heaven. HTC would have been a logical choice, but they were doing well using the cross-platform model. Dell also would have made sense since they want in-roads into the cellphone sector. But they're not as big as HP and can't gamble with their money as much (http://www.wolframalpha.com/input/?i=dell+hp). So hopefully, HP stands by their comment that they are doubling up on WebOS. I love my Pre Plus. I also love my iPad, but it'd even be better if it ran on an open system like WebOS. Here's hoping my next slate is an HP slate running on WebOS!

Great news. Could not have picked a better partner than HP. Quite honestly, both are very creative companies. I very much like the news, but I sure hope Jon Rubinstein will stay on board for a long time to come, not just few months, as he is the main inspiration behind the new face for Palm products.

Now, being in Canada, and not wanting to go with Bell CDMA provider, I have been waiting and waiting for Palm Pre Plus to become finally available in GSM so that I can buy the phone to work with Rogers.

To kill other smartphones on the market, make the next product with a bigger screen (3.7?), powerful processor, bigger keyboard that we can actually work without discomfort and I will be a webOS customer for life!

anonymous prepaid credit card

Hope Palm will benefit from this deal, expecting some great investments from HP. Frankly speaking it's a really good new for palm, waiting for the results... HYIP monitor

ended too quick...