HP finally closes Palm acquisition
By James • Jul 2nd, 2010 • Category: Industry News
- Photo: Palm
It is now official. The drawn out acquisition of Palm is now complete, with HP’s press release unequivocally stating they plan on using Palm’s webOS for netbooks, smartphones, and, surprise surprise, a webOS tablet computer.
Shareholder approval paved the way
There were never any competition regulatory concerns with regards to the HP Palm acquisition, so all that stood in HP’s way was shareholder approval. Around a week ago, Palm’s shareholders approved the merger, with the final valuation, as previously announced, being $1.2 billion in an all-cash deal valued at $5.70 per share.
The crown jewel
As we’ve said before, the Palm webOS is the crown jewel – and the primary driver – in this acquisition, with HP not mincing any words about who will be doing what.
The company’s statement read: ‘HP’s global scale and financial strength plus Palm’s award-winning webOS experience, as well as its acclaimed Pre and Pixi smartphone product lines, enhance HP’s ability to participate more aggressively in the highly profitable, $100 billion smartphone and connected mobile device markets.’
Bye, bye Windows 7 Slate

- Photo: HP
The key phrase in that paragraph is ‘connected mobile devices’, and HP revealed it would be developing a webOS tablet computer, as we expected. The first thing that came to mind regarding the HP Palm acquisition and Palm webOS was what would happen to the Windows 7-powered Slate PC. There were rumours a few months ago that HP had canned the Slate altogether, but we predicted Hewlett-Packard would possibly just replace Windows 7 with its newly acquired mobile slate. Which is a good thing considering we, umm, slated the HP Slate for shoehorning Windows 7 in.
Rev your engines
The HP Palm acquisition really does give the Palm team some financial muscle, as much as it gives HP a very innovative framework to work from. The prospect of a Palm webOS powered tablet is a fascinating one, and if executed properly at both a software and hardware level could mean a serious competitor in the tablet space.
Tags for this article: smartphone, hp













