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HP Purchases Smartphone Maker Palm for $1.2 Billion
04.29.2010
Global tech giant HP finalized their purchase of smartphone maker Palm in a $1.2 billion deal Wednesday.
With last year's release of Palm's new smartphone operating system, the webOS, the mobile device maker has struggled to define itself from bigger smartphone devices, like Apple's iPhone and the Google Android.
Some believe HP's acquisition of Palm may bring financial strength to the webOS-running smartphones and help the company regain its position in the smartphone market.
“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.
Along with struggles to define the webOS and the release of the Palm Pre, speculation over Palm CEO Jonathan Rubinstein was addressed when HP stated Rubinstein would remain with the company. Rubinstein said of the purchase, "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."
According to HP, the official transaction will come to a close at the conclusion of their third fiscal quarter, around July 31, 2010.
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