HP has agreed to purchase Palm for $1.2 billion, paying $5.70 a share or about 23 percent more than what the stock is currently priced at. Palm will operate as a business unit within HP.
One of the many questions tossed out surrounding this acquisition is where does this put the Windows Phone? HP was listed as an initial hardware partner for Windows Phone 7 devicesm but will WebOS pull center stage with HP?
According to Brian Humphries, HP's VP of Strategy and Corporate Development, "We intend to continue to be a strategic partner for Microsoft. They're a huge piece of our business today and will continue to be so."
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