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Palm acquired by HP for $1.2 billion

As reported before, Palm was up for sale and it  has been acquired by Hewlett-Packard(HP) for about $1.2 billion, cash.

On Wednesday, Palm closed trading at $4.63 which makes it worth about $781 million at the end of the Wall Street trading day.

Its hard to say how Palm will fit into HP or the other way round, but most probably HP will retain the Palm Pre and Pixi line of smartphones considering the investments and efforts that Palm has put into it. I think that this acquisition is good for Palm as HP has all the resources that Palm needs to grow further.

Its good to see that HP is still manufacturing the iPAQs which puts them in the same business as Palm.

The acquisition is subject to regulatory approval.

The history of Palm can be found on Wikipedia, over here.

Also read the official report on Associated Press.

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy