HP to Buy Palm for $1.2 Billion!
Can you believe this? Who ever suspected that HP would buy Palm? It makes sense – HP is the number one PC manufacturer, but they have no presence in mobile. Their recent attempt at a smartphone, namely the HP iPAQ Glisten, wasn’t well received. Having WebOS in its portfolio will give them a huge head start in making a big move in mobile. They have a lot of resources: a big R&D department, great distribution, and tons of cash, all of which they can deploy in their mobile efforts to help make WebOS a bit player in mobile. From BusinessWire…
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.
“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.”
“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,” said Jon Rubinstein, chairman and chief executive officer, Palm. “We look forward to working with HP to continue to deliver industry-leading mobile experiences to our customers and business partners.”
Naturally, it won’t be a while until we see anything interesting out of this merger. It often takes months, if not up to a year or more, for two companies to fully integrate and achieve synergies.
What are your thoughts on this?