HP and Palm have entered into an agreement that will end in HP buying Palm for $1.2 billion that equals out to be about $5.70 per share. Both companies’ board of directors have signed off on the deal meaning it’s most likely going to happen.
HP’s reach and financial means should carry Palm and its strong WebOS platform in the future. HP has been long pushing its tablet PCs and this purchase could help them even further that incentive. HP commented on the move:
“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, 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.”
The final transaction looks like it will most likely take place at the end of HP’s third quarter on July 31st. This is excellent news for both companies as Palm’s survival was in question and HP could start moving in the mobile direction much quicker with this acquisition. What do you think of this move?