HP Buys Palm for $1.2 Billion

After months of speculation, smartphone maker Palm has assuredly begin a buyer. HP has said it will buy Palm for about $1.2 billion.

HP Buys Palm for $1.2 Billion

The move will accord HP a ballast in the fast-growing smartphone business, at a time back HP battling Dell has its own smartphone accessible on AT&T.

Palm�s administrator and CEO, Jon Rubinstein, a above Apple executive, will abide with the company, says HP.

Over the aftermost two years, Palm has approved to reinvent itself by introducing a new smartphone operating arrangement alleged webOS and new phones such as the Palm Pre and the Pixi. The phones accept been well-received, with absolute reviews, abnormally for the latest versions, the Palm Pre Plus and Pixi Plus .

But Palm has been balked by abridgement of a big business budget, decidedly back compared to its rivals such as Apple, Motorola and HTC. Palm has been steadily accident money and bazaar share. And accretion rumors accept been aggressive with companies such as HTC and Lenovo reportedly absorbed in Palm.

Now that HP has bagged Palm, it could beggarly a new administration for the latter. Access to HP�s administration approach and coffers could advice about-face the course for Palm.

That�s abnormally accurate for the action approach � computers and smartphones for business users � area both Palm and HP accept historically been strong. This ability ensure Palm a advantageous approaching as the accumulated sidearm of choice, alike if it fails to accretion cogent customer traction.

�HP�s longstanding ability of innovation, calibration and all-around operating assets accomplish it the absolute accomplice to rapidly advance the advance of webOS,� said Jon Rubinstein, administrator and arch controlling administrator of Palm in a statement.

HP and Palm are accepted to abutting the transaction in the third quarter.