The news is confirmed and official. HP has bought Palm at $5.70 per share and totals to about $1.2 billion and the deal will be closed on the 31st of July which is the end of the third quarter of the fiscal year of Palm and it was approved by both the board of HP and Palm. The current CEO of Palm, Jon Rubenstein will still be part of the company, although it will not be in the same capacity as before.
Critics are saying that the merge between the two companies will become the best partnership ever. Can you imagine HP, one of the leading makers of communication technologies pair up with Palm, the leading creator of WebOS in the world? The webOS created by Palm will give HP the advantage in multitasking and other updated web 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.”
Brian Humphries, HP’s Senior Vice President of Strategy and Corporate Development said about the deal. “This is a great opportunity to take two Silicon Valley idols and put them together,” Humphries noted. That’s an obvious statement, but he quickly moved on to the meat. “WebOS is the best-in-class mobile operating system. Our intent is to double down on webOS,” Humphries said.
It’s in a way a good coming together of both companies who are aces in their fields. Both companies have decided to work on each other’s weaknesses and to play on their strengths. HP will be utilizing the OS designed by Palm and so forth. The HP and Palm tandem will be something to be watched out for in the future.
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