HP Buys Out Palm

Struggling mobile manufacturer Palm is being bought by American computer giant HP for $1billion.

Palm, a pioneer in the smart-phone industry, has been hotly tipped as a prime target for a corporate take-over following their failed efforts to compete with the likes of Apple and Android in recent years.

The company was founded in 1992, and was once a trend-setter in the mobile marketplace. However, recent ventures such as its webOS and Palm Pre have not hit expected sales or market targets.

Brian Humphries, HP’s Senior Vice President of Strategy and Corporate Development, said earlier today: “This is a great opportunity to take two Silicon Valley idols and put them together,” Humphries noted. That’s an obvious statement, but he quickly moved on to the meat. “WebOS is the best-in-class mobile operating system. Our intent is to double down on webOS.”

HP has made a statement on their website outlining some of their plans for Palm, which includes development of the webOS platform into HP mobile devices.

As part of the deal, HP will pay $5.70 per share in Palm, a premium on today’s closing price of $4.63, but a far cry from the lofty-heights of their 52-week high of $18.09 per share prior to the launch of the Pre handset.