Palm bought by HP for £788m


Smartphone manufacturer Palm is being bought by IT manufacturer Hewlett-Packard (HP) for $1.2 billion (£788 million).

HP claimed that its global scale and financial strength, along with Palm’s webOS platform will enhance its ability to participate in the fast-gorwing smartphone and connected mobile devices market. It also claimed that webOS will enable it to take advantage of features such as true multi-tasking and always up-to-date information sharing across applications.

HP is paying $5.70 for each of Palm’s shares and said it hopes to have the deal concluded by July 31, 2010.

HP executive vice president, Personal Systems Group Todd Bradley said: “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. 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.”

Palm chairman and chief executive Jon Rubinstein said: “HP’s longstanding culture of innovation, scale and global operating resources make it the perfect partner to rapidly accelerate the growth of webOS.”

Palm released the Pre handset, which features the webOS platform, last October. However in the current issue of Mobile News, O2 and Carphone Warehouse store staff claimed that sales of the Pre have been a “disaster”, despite denials by Palm and O2.