HP and Palm Are Now One

HP’s acquisition of Palm is complete, and Palm is now a wholly-owned subsidiary of the tech giant. This means that Palm’s name will remain intact, at least for the time being, and the combined company can now really get down to the business of making industry-leading smartphones, tablets, and other mobile (and not-so-mobile, i.e., printers) devices.

From HP’s press release:

HP Completes Palm Acquisition

Accelerates HP’s growth in $100 billion smartphone and connected mobile device markets

PALO ALTO, Calif., July 1, 2010

 


 

HP today announced it has completed its acquisition of Palm Inc. at a price of $5.70 per share of Palm common stock in cash.

The combination gives HP significant headway into one of technology’s fastest-growth segments with Palm’s innovative webOS platform and family of smartphones, plus a rich portfolio of intellectual property from the smartphone pioneer.

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.

“With webOS, HP will deliver its customers a unique and compelling experience across smartphones and other mobility products,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “This allows us the opportunity to fully engage in growing our smartphone family offering and the footprint of webOS.”

Under Jon Rubinstein, former Palm chairman and chief executive officer, the Palm global business unit will report to Bradley. Palm will be responsible for webOS software development and webOS based hardware products, from a robust smartphone roadmap to future slate PCs and netbooks. [Emphasis added.]

“With HP’s full backing and global strengths, I’m confident that webOS will be able to reach its full potential,” said Rubinstein. ”This agreement will accelerate the development of this incredible platform with new resources, scale and support from a world-respected brand.”

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP (NYSE: HPQ) is available at http://www.hp.com/.

 


 

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including the expected benefits and costs of the transaction; management plans relating to the transaction; the expected timing of the completion of the transaction; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; risks related to the timing or ultimate completion of the transaction; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2010 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2009. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP shall not be liable for technical or editorial errors or omissions contained herein.


Editorial contacts:

Jim Christensen, HP: jim.christensen@hp.com

Derick Mains, Palm: derick.mains@palm.com

Obviously, HP was careful in the press release to erase any doubts that they’re serious about smartphones—the word is used fully seven times in the short release. And, HP recognizes the value of Palm’s employees and the Palm community. HP CTO Phil McKinney had this to say on the HP Voodoo blog:

We’ve already talked about the tremendous opportunities that will come from marrying Palm’s award-winning intellectual property with HP’s scale and financial strength. You can imagine the potential impact of turning the billion people who already use HP products worldwide into fans of webOS phones and mobile systems. [Emphasis added.]

For me, what’s equally exciting is the Palm team itself. Over the last couple of weeks, I’ve had the opportunity to personally meet a number of Palm employees, and I’ve been impressed with their passion for innovation, vision for the future and commitment to growing with HP.

I’ve also heard great stories about the Palm community’s enthusiasm. And I recently met with Ben Galbraith and Dion Almaer from the Palm Developer Relations Team to discuss the opportunities that lie ahead for WebOS developers.  Stay tuned for a vidcast from that discussion.[Emphasis added.]

We’re looking forward to the future. Please stay tuned to The Next Bench, our Twitter channels (@HP_PC, @palm) and Facebook pages (HP for Home, Palm) for updates.

These are exciting times for HP, Palm, and the Palm/webOS community. With some new hardware and webOS updates on the horizon, we should all be looking forward to supporting not just the best mobile platform on the market, but soon to be one of the most successful.

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  1. [...] the acquisition of Palm? There have been a number of interesting statements from HP employees, and official affirmations of HP’s commitment to the smartphone market, Palm, and webOS, but nothing definitive. Really, we have no more idea today of when the next webOS device will be [...]

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