HP buys Palm
By Chris Ziegler 
posted April 28th 2010 4:06PM
posted April 28th 2010 4:06PM
Update: PreCentral's managed to grab a copy of Rubinstein's letter to Palm employees.
See also:
- HP buys Palm: the liveblog
- HP: 'We're doubling down on webOS,' Palm: 'That was the whole point'
- HP: opportunities for webOS 'smartphones, slates, and potentially netbooks'
PALO ALTO, Calif. & SUNNYVALE, Calif.--(BUSINESS WIRE)--HP (NYSE: HPQ - News) and Palm, Inc. (NASDAQ: PALM - News) today announced that they have entered into a definitive agreement under which HP will purchase Palm, a provider of smartphones powered by the Palm webOS mobile operating system, at a price of $5.70 per share of Palm common stock in cash or an enterprise value of approximately $1.2 billion. The transaction has been approved by the HP and Palm boards of directors.
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."
Under the terms of the merger agreement, Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger. The merger consideration takes into account the updated guidance and other financial information being released by Palm this afternoon. The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Palm's stockholders. The transaction is expected to close during HP's third fiscal quarter ending July 31, 2010.
Palm's current chairman and CEO, Jon Rubinstein, is expected to remain with the company.
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."
Under the terms of the merger agreement, Palm stockholders will receive $5.70 in cash for each share of Palm common stock that they hold at the closing of the merger. The merger consideration takes into account the updated guidance and other financial information being released by Palm this afternoon. The acquisition is subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Palm's stockholders. The transaction is expected to close during HP's third fiscal quarter ending July 31, 2010.
Palm's current chairman and CEO, Jon Rubinstein, is expected to remain with the company.
Web OS should gain some instant stability. I'm an iPhone user that has looked at the pre lustily for a while but has always been afraid that it would become a lost platform. If I'm HP, I do everything I can to speed up the products in the pipeline as proof that the platform has life and then I try to bolster the number of apps. Unless HP is planning on dismantling the platform and starting fresh, which would suck.
Well wow that came outta nowhere
Things get interesting...HP is a great company, no the decision will be harder...Palm + WebOS or HTC + Windows Phone 7...damn...i hate that world...
"Palm's current chairman and CEO, Jon Rubinstein, is expected to remain with the company."
Wonder how that will go?
Ok.... Not as exciting as HTC or RIM buying them, however, as anyone seen the new HP commercials about making ur computer yours? About personalizing it to ur specs, they had a few with Jay Z, Shaun White, Pharel, etc! Honestly, they have the cash and the people to build a pretty sick device, couple that with Web OS! Hmmmm, sounds very interesting!
YES!
other than cash, can HP bring anything to the table to make a smartphone that doesn't suck ass in terms of hardware?
@andreb i mean they invented this game right? give them a chance, look at HTC and Dell and there epic Comebacks... who knows maybe HP plans to release the next EVO 4g Superphone running WebOS in all of its massive screen glory... Just hoping the iPaq name is gone
@SteveyAyo
"don't call it a comeback; they've been there for years!"
bonus points if you can name the song. but to your point: i really hope so - i've been eyeing smartphones while still under contract. to me, webos just looks like the only OS that was made with passion
@andreb
lol, Mama Said Knock U Out, LL Cool J, 1990
@Devobail
You sir, have just won yourself a Hewlett Palm media player!
Oh no.
Wow... Left field man! next thing ya know DELL is going to buy RIM. What is the world coming to?
no....No....
.........NOOOOOOOOOOO!!!!!!!!!!!!!!!!!
I dont feel good about this deal... just like oracle bought sun...
YES! can't wait for my new HP ipaq running webos. Wait...what the?
And a WebOS HP Slate.....WoW...WaaaoooWWW, (Just make it a bit slimmer though)
Well didn't think HTC had billions lying around anyways...they probably got outbid! My first pocket pc was the iPaq rx3715. I enjoyed it till it fell in the toilet :( looking forward to the new HP OS!
nooooooooooooooooooooooooooooooooooooooooooooooooooooooooo
@Dirojey that was my first thought....but who knows, anything can happen, we can only wait and see
Uhhhhh. WOW.
Yeah I'm thinking this could actually turn out to be a good thing.
I do not know what to think right now...I've hated every HP printer I've ever owned. I never want to hate my Palm gear...
WebOS tablets? BEAUTIFUL!
@Re2st you must be joking
@cherryboom Why are your comments always such incomprehensible garbage?
@cherryboom you're idiot. HP has all the reasons to use WebOS on their mobile products, be it a phone or a tablet
Hewlett-Palmkard?
@ForeverZero Lol that's the only one that made me laugh.
NO :'(
Did NOT see that coming, at all. Straight outta left field. Anyways, at least we know HP doesn't make crap hardware. Usually.
@RickStar My older bro gave us his HP desktop that he bought for school a couple years ago. The thing is a fucking piece of shit.
@Toneglaso
"he bought for school a couple years ago."
Of course its gonna be a POS if its that old.
WebOS on an HP Slate = Salivating
@TheEdge Now THAT could be spectacular! They need to drop Win 7 on the Slate ASAP!
@BergerFan
Or they could make a slate for both! Just like they're making one for Win 7 and Android!
@TheEdge MY thoughts EXACTLY!! I think the smartphone is a tad crowded with WM7 dropping soon. With 1% share that is a HUGE amount of work to be done.
BUT, the iPAD clone market is just heating up. Plenty of room to dominate. I love Android, but I think that webOS may be a perfect solution for a larger screen. HP slate with 1.5 ghz, dual camera, usb friendly, SNAPPY (equal to iPAD) device all for about 4-5 Benjamins. Focus apps on the new screen size and get this thing out by XMAS. I would pre-order today.
@Prkl8r 4-5 benjamins? seriously look at the stuff on the iPad its snappy as hell and built for almost nothing. If you wanted dual cameras, 1,5ghz processor (most likely a 1.6ghz atom). a 10" touchscreen... well just look at the prices of a touchscreen netbook. you looking at 600-700. once you hit that price its no longer iPad competition.
Maybe what I really wanted in an iPaq a decade ago will come true...
Someone bought something in 2010 with the Palm logo on it? This is big news.
This is either going to go very good... or very bad.
If this was HP of a few years ago, I would have written-off Palm completely - their old CEO Carly Fiorina trashed what had made HP an innovator within the industry. (and that crazy bitch is currently running for Senate in CA).
Now that she's gone, I still see HP as an empty husk of what it used to be, but with signs of improvement. Maybe with some of Palm's outside-the-box thinking, HP can regain some of their former engineering prowess and come up with something great.
I hope.
Or HP simply bought Palm for their extensive patent portfolio and plans on not doing much to improve their chances in the phone business.
I never thought of HP when purchasing a mobile phone. I guess HP "intends" of being one of them.
Titanic acquires new anchor?
I'd like to see a HP Slate running Web OS. Don't think I would buy it, but I'd like to see it.
What?What?What?
WOW.. I saw the breaking news banner and was shocked..
I hope they continue to develop WebOS because it really is a great os
HP Slate with WebOS plzkthx!
@Kyusaku omg yes please
WAT THA FUCK!!!!!!!!!!!!!!!!!!!!!!!!!
Get the fuck out.
OMG!