HP to buy Palm for $1.2 billion

Hewlett-Packard formally announced that it has reached an agreement to sell Palm to HP for $5.70 per share, or around $1.2 billion total. The deal came as a surprise to Silicon Valley gossips who were sure HTC or Lenovo would acquire Palm. (VentureBeat writers suggested that RIM and LG consider Palm, but we didn’t expect either of those deals to happen.)

HP, the world’s largest technology company with over 300,000 employees worldwide, plans to use Palm’s technology to “enhance HP’s ability to participate more aggressively in the fast-growing, highly profitable smartphone and connected mobile device markets.” So far, HP has never sold a mobile phone.

HP conducted a webcast with investors at 2 PM Pacific Time, hosted by Todd Bradley, the head of HP’s Personal Systems Group — and formerly Palm’s CEO himself.

Update: Here’s our story on the conference call. The big message: The deal isn’t just about smartphones, but tablets and netbooks too.

In our other coverage of the acquisition, we’ve also looked at what the deal says about Palm investor Elevation Partners (with some math showing how Elevation made $25 million), its impact on the broader mobile landscape, and how the deal makes sense given Todd Bradley’s history with HP and Palm. We also discuss what the deal says about HP’s tradition of innovation.

Don’t miss MobileBeat 2010, VentureBeat’s conference on the future of mobile. The theme: “The year of the superphone and who will profit.” Now expanded to two days, MobileBeat 2010 will take place on July 12-13 at The Palace Hotel in San Francisco. Early-bird pricing is available until May 15. For complete conference details, or to apply for the MobileBeat Startup Competition, click here.

Trackbacks

  1. [...] Last year the the company scooped up mobile hardware/software company Palm (and its webOS platform) for a hefty $1.2 billion. Since then, HP has been playing catch-up while working to integrate the upstart OS into mobile [...]

  2. [...] the company scooped up smartphone veteran Palm (and its webOS platform) for a hefty .2 billion. Since then, HP has been playing catch-up [...]

  3. [...] evil for HP. Last year the the company scooped up smartphone veteran Palm (and its webOS platform) for a hefty $1.2 billion. Since then, HP has been playing catch-up while working to integrate the webOS into mobile devices [...]

  4. [...] evil for HP. Last year the the company scooped up smartphone veteran Palm (and its webOS platform) for a hefty $1.2 billion. Since then, HP has been playing catch-up while working to integrate the webOS into mobile devices [...]

  5. [...] HP bought Palm for $1.2 billion last year, mainly for the company’s webOS mobile software, which wowed the tech world when it debuted in 2009. At the time of the acquisition, HP said that it wanted Palm for more than just its smartphone experience — it wanted to bring webOS to netbooks and tablets as well. [...]

  6. [...] HP bought Palm for $1.2 billion in 2010, mainly for the company’s webOS mobile software, which wowed the tech world when it debuted in 2009. At the time of the acquisition, HP said that it wanted Palm for more than just its smartphone experience — HP had grand the ambition to bring webOS to netbooks and tablets as well. [...]

  7. [...] HP bought Palm for $1.2 billion in 2010, mainly for the company’s webOS mobile software, which wowed the tech world when it debuted in 2009. At the time of the acquisition, HP said that it wanted Palm for more than just its smartphone experience — HP had grand the ambition to bring webOS to netbooks and tablets as well. [...]

  8. [...] real plans for webOS from these statements, but I suspect the company will find some way to make its $1.2 billion purchase of Palm worthwhile. I’m hoping it can find success licensing webOS, otherwise we’ll see yet [...]

  9. [...] real plans for webOS from these statements, but I suspect the company will find some way to make its $1.2 billion purchase of Palm worthwhile. I’m hoping it can find success licensing webOS, otherwise we’ll see yet [...]

  10. [...] originally came from Palm, which HP bought for $1.2 billion in 2010. HP said that it wanted Palm for more than just its smartphones, and that it had big plans to bring [...]

  11. [...] originally came from Palm, which HP bought for $1.2 billion in 2010. HP said that it wanted Palm for more than just its smartphones, and that it had big plans to bring [...]

  12. [...] originally came from Palm, which HP bought for $1.2 billion in 2010. HP said that it wanted Palm for more than just its smartphones, and that it had big plans to bring [...]

  13. [...] originally came from Palm, which HP bought for $1.2 billion in 2010. HP said that it wanted Palm for more than just its smartphones, and that it had big plans to bring [...]

  14. [...] originally came from Palm, which HP bought for $1.2 billion in 2010 . HP said that it wanted Palm for greater than just its smartphones, and that it had big plans to [...]

  15. [...] real plans for webOS from these statements, but i believe the corporate will find a way to make its $1.2 billion purchase of Palm worthwhile. i hope it may find success licensing webOS; otherwise we’ll see another bidding [...]

  16. [...] employees on task when it’s fairly obvious the mobile OS, which HP snagged as part of its $1.2 billion Palm purchase last year, doesn’t have much of a future. The company has discussed licensing the OS to other [...]

  17. [...] employees on task when it’s fairly obvious the mobile OS, which HP snagged as part of its $1.2 billion Palm purchase last year, doesn’t have much of a future. The company has discussed licensing the OS to other [...]

  18. [...] HP paid $1.2 billion for Palm in 2o10, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  19. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  20. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  21. [...] 惠普此前在 2010 年以 12 亿买下了 Palm ,但考虑到 TouchPad 经历了如此严重的失败, Amazon 可能会以便宜的多的价格买下 Palm ,尤其是当 Amazon 完全不会在意如何延续已有的 WebOS 设备的时候。 [...]

  22. [...] HP paid $1.2 billion for Palm in 2010, yet Amazon will finish adult spending a fragment of that if a understanding goes through. Given only how badly a TouchPad failed, HP will expected offer what’s left of Palm during a vital discount, generally given Amazon woudn’t be meddlesome in resuscitating now archaic webOS hardware. [...]

  23. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  24. [...] HP paid .2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  25. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  26. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  27. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  28. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  29. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  30. [...] HP paid $1.2 billion for Palm in 2010, yet Amazon will finish adult spending a fragment of that if a understanding goes through. Given only how badly a TouchPad failed, HP will expected offer what’s left of Palm during a vital discount, generally given Amazon woudn’t be meddlesome in resuscitating now archaic webOS hardware. [...]

  31. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  32. [...] HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. [...]

  33. [...] paid $1.2 billion for WebOS’ creator Palm in 2010 with the intent to run the operating system on its mobile devices, such as the TouchPad and [...]

  34. [...] paid $1.2 billion for webOS’ creator Palm in 2010 with the intent to run the operating system on its mobile devices, such as the TouchPad and [...]

  35. [...] paid $1.2 billion for webOS’ creator Palm in 2010 with the intent to run the operating system on its mobile devices, such as the TouchPad and [...]

  36. [...] Can she somehow transform the Palm and webOS business into something profitable rather than a $1.2 billion noose around HP’s neck? Here are three options for the future of [...]

  37. [...] paid $1.2 billion for webOS’ creator Palm in 2010 with the intent to run the operating system on its mobile devices, such as the TouchPad and [...]

  38. [...] to hold on to webOS. (Pictured above, HP’s inexplicable printer/Android tablet combo.) HP paid $1.2 billion for Palm last year, and it revealed in its earnings report today that it spent another $1.66 billion just to wind down [...]

  39. [...] continues to hold on to webOS. (Pictured above, HP’s inexplicable printer/Android tablet combo.) HP paid $1.2 billion for Palm last year, and it revealed in its earnings report today that it spent another $1.66 billion just to wind down [...]

  40. [...] which bought webOS-creator Palm last year for $1.2 billion, is in a precarious position about what to do with the troubled OS. After axing the HP TouchPad [...]

  41. [...] company seemingly ignored that, since it purchased Palm in April 2010, the value of the smartphone pioneer’s brand had fallen significant thanks to the spectacular [...]

  42. [...] company seemingly ignored that, since it purchased Palm in April 2010, the value of the smartphone pioneer’s brand had fallen significant thanks to the spectacular [...]

  43. [...] company seemingly ignored that Palm’s value had fallen significantly since HP purchased the smartphone pioneer in April 2010, thanks to the spectacular failure of the HP Touchpad tablet. And the fact that HP didn’t make [...]

  44. [...] someone else’s lap! The asking price? $1.2 BILLION. That’s right, the same price they acquired Palm for back in April, [...]

  45. [...] company seemingly ignored that Palm’s value had fallen significantly since HP purchased the smartphone pioneer in April 2010, thanks to the spectacular failure of the HP Touchpad tablet. And the fact that HP didn’t make [...]

  46. [...] company seemingly ignored that Palm’s value had fallen significantly since HP purchased the smartphone pioneer in April 2010, thanks to the spectacular failure of the HP Touchpad tablet. And the fact that HP didn’t make [...]

  47. [...] company seemingly ignored that Palm’s value had fallen significantly since HP purchased the smartphone pioneer in April 2010, thanks to the spectacular failure of the HP Touchpad tablet. And the fact that HP didn’t make [...]

  48. [...] company seemingly ignored that Palm’s value had fallen significantly since HP purchased the smartphone pioneer in April 2010, thanks to the spectacular failure of the HP Touchpad tablet. And the fact that HP didn’t make [...]

  49. [...] company seemingly ignored that Palm’s value had fallen significantly since HP purchased the smartphone pioneer in April 2010, thanks to the spectacular failure of the HP Touchpad tablet. And the fact that HP didn’t make [...]

  50. [...] core business. He pushed to kill the company’s WebOS hardware, just a year after the company bought Palm for $1.2 billion, and he also brought up the idea of spinning off HP”s PC business. HP ended up open sourcing [...]