Palm is bought by HP

The Palm mobile has been sold to the Global giant HP for a billion cash as it was running in loss since the mobiles launched by them were unable to be sold as expected. Palm recently launched Palm Pre but couldn’t get profit from that as it didn’t have any extra specifications, different from other smartphone and normal smartphone market is ruled by Apple & Blackberry. So they tried to sell it instead of trying another new mobile, as a result there was bid in between two device giants, Dell and Hewlett Packard. At the end, Hewlett Packard bought the Palm completely by $1 billion in cash. The deal is worth $1.2 billion for palm if they include their debt.

HP bought the company mainly to use their technology, as an example they will use the WebOS of the palm mobiles that will help them in expanding their hardware in palm technology in this ever growing competitive market since HP concentrate on making hardware parts only, not much any software or user interface for mobile or portable devices.

In the deal, HP will pay $5.7 for each share of Palm and expected to complete all legal steps of this transaction by the end of July. Still the value is low for palm, as the record of its 52 week high is $18.09, where and Hewlett Packard is paying $5.7, an added premium on the current price of $4.63 per share value. This deal may open a possibility for HP to enter the mobile market with their own hardware technology, and they decided to keep some top level staff of palm even after they buy it, Jon Rubinstein, Palm’s current Chairman is one of them.

We will be waiting for any new innovative device from HP and Palm that will ease our daily life a little bit more.