Hewlett-Pakard and Palm announced that HP will buy out struggling Palm for $1.2 billion.
Was is money well spent? Only time will tell.
Palm was started in 1992 when they launched the Palm Pilot which originated the handheld computing market. As new owners took over, other companies overtook the market with their new smartphones. In recent years the market has been flooded with these new smartphones and Palm has struggled to keep up the Apple iPhone, Research In Motion's Blackberry line, and Google's Android.
The entire press release can be found on HP's website, http://www.hp.com/, but the highlights are:
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.
Today ends months of speculation and rumor about the future of Palm.
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