Hewlett-Packard has just announced that it would buy Palm for a staggering price of $1.2 billion dollars, roughly about $5.70 per share of common stock. The merge and acquisition, which are planned to close by July 31, can give the Palo Alto computer giant a great opportunity to get a bigger slice from the hot and trendy smartphones market, valued at $100bn alone and with annual rapid growth of 20% . HP executive vice president Todd Bradley said that “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 also added that “Between smartphones, slates, and potentially netbooks, there are a lot of opportunities here.” And he’s right, just think about the endless potential possibilities of having Palm’s stunning WebOS integrated in HP’s future multi-touch devices, whether these are mobile phones, tablets or other portable machines – it’s HUGE and HP, in our opinion, has clearly taken a few significant steps in the right direction, especially now when strident voices, complaining about a sluggish HP Slate performance, start floating around – WebOS can definitely improve speed reaction dramatically – and someone at the HP headquarters has probably figured this one pretty well. Brian Humphries, HP’s Senior Vice President of Strategy and Corporate Development quoted saying “our intent is to double down on WebOS”. That’s very important, considering the months of speculations where Palm was desperately looking for a buyer. And given the fact that HP is getting over 1500 patents that Palm currently owns (that probably has considerable value as well, isn’t it?), along with a very good team of young talented engineers and one relentless chairman and CEO, Jon Rubinstein, who is expected to remain with the company another few years long, this very complex deal that few months back, could easily have seemed impossible, can all of a sudden turn into a nice and promising bargain. PR announcement after the break.
Update: Digitimes says that HP Taiwan VP, Monty Wong has officially confirmed a webOS tablet to go live somewhere around October of this year. Stay tuned for more to come.