April 28, 2010 · 3:57 pm

Money down the rat hole

HP to buy Palm for $1.2 billion. Why?

3 Comments

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3 Responses to Money down the rat hole

  1. Anonymous
    April 28, 2010 at 4:10 pm

    Likely a tech acquisition that’s cheap for a cash-rich BigTech like HP
    HP’s Hurd is one of most respected tech CEOs

  2. FlyAngler
    April 28, 2010 at 7:14 pm

    HP is suffering under the limitations of Windows Mobile or whatever the current mobile Microsoft OS may be called. HP buying Palm is a software acquisition where they pick up Palm’s WebOS operating system that gets quite good grades from users. HP, a small player in the mobile handset market, seems to see a future in tablets and netbooks running WebOS. This may be the only way for HP to compete against Google’s
    Android and Apples iPhone/iPad OS.

    If this does not work out, $1.2Bn, a 23% premium to Palm’s pre-deal stock price, HP writes it off and seeks out another path.

  3. Richard
    April 28, 2010 at 7:36 pm

    Palm has some good phone technology but lacks scale. HP has scale but no phone technology or strategy. It’s a pretty small bet for HP.