Wednesday, April 28, 2010
H.P. to Pay $1.2 Billion for Palm
Today Hewlett-Packard announced its $1.2 billion purchase of Palm - the struggling maker of the Pixi and Pre smartphones - in order to remain relevant in the technological market. H.P. is the largest computer maker in the world and he deal gives H.P. access to Palm’s software that can run phones, as well as other types of devices. For Palm, the buyout means a "new life" for the company because of H.P.'s deep pockets and strong retail relations. It can be a win-win situation for both companies in terms of acquiring a larger marketshare for smartphone sales, but at the same time this article highlights some implications that H.P. and Palm still face.
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3 comments:
Why do the two articles on this blog about HP purchasing Palm have significantly different numbers for the purchase? ($4B vs. $1.2B) And how did Palm become $400B in debt? Is that just their long-term debt as a start up company in a very expensive industry or have they just been a failure as a company? Does anyone have any idea!?
Thats a good thing for palm, becasue im pretty sure the last time I heard from that company was with the palm pilot ( which are usless no a days). Maybe they will be able to save their name, and develop a new product which would benefit HP as well.
Palm will really benefit from this buyout. They will have more money to work with and develop some products to compete with the bigger companies. HP just has to be smart about how they go about getting Palm back on there feet.
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