HP Snaps up Palm and Bono Cries
Wednesday’s announcement that HP will buy Palm for around $5.70 per share of Palm common stock – that comes to about $1.2 billion.
HP was not exactly in the favourites as far as this buy-out was concerned. Everyone expected the likes of Lenovo, HTC or Nokia to scoop up the builder of the phone that Angelina Jolie loves.
Now that HP is looking to slip into the tablet market with their Slate this might be a decent move.
HP’s Vice President of the Personal Systems Group, Todd Bradley, reckons that Palm’s operating system is an “ideal platform” that will help expand HP’s mobile efforts. “And, Palm possesses significant IP assets and has a highly skilled team,” He went on to point out that “The smartphone market is large, profitable and rapidly growing, and companies that can provide an integrated device and experience command a higher share. Advances in mobility are offering significant opportunities, and HP intends to be a leader in this market.”
Funnily enough Bradley previously played the role of CEO at Palm so he will no doubt already have in mind how the companies can play the mobile market together.
U2 front-ego, Bono, will be licking his wounds to the tune of Â£92m.
Bonoâ€™s private equity venture, Elevation Partners, owns an approximate 30% stake in Palm after investing $460m. However, the new deal values the stake at a total of $320m. Ouch!
How do you Palm fans feel about this?