HP to Acquire Palm

Posted April 28, 2010, 5:44 p.m.

Hewlett Packard (HP), the venerable technology firm and computer manufacturer, announced today that it will acquire smartphone-maker Palm for $1.2 billion. HP intends to expand support and development of Palm’s well-regarded WebOS mobile operating system, scaling it to new phones and other devices like tablet computers.

Palm has been faced with a number of challenges recently, and while WebOS is much-adored by tech pundits and users it has not met with wide success in the marketplace.

According to preliminary information, Palm will continue to operate as a semi-independent business unit within HP and will retain much of its current leadership team, including CEO John Rubenstein. Palm shareholders will receive $5.70 per share and the merger is expected to close in the third fiscal quarter of this year.

As a Palm user and long-time Palm fan, I am cautiously optimistic about this turn of events. Hopefully it will lead to better phones and faster development of my favorite mobile operating system.

Scott Bradford is a writer and technologist who has been putting his opinions online since 1995. He believes in three inviolable human rights: life, liberty, and property. He is a Catholic Christian who worships the trinitarian God described in the Nicene Creed. Scott is a husband, nerd, pet lover, and AMC/Jeep enthusiast with a B.S. degree in public administration from George Mason University.

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