HP to Acquire Palm for $1.2 Billion

In a surprise (to me, at least) move, HP today announced they are buying Palm, Inc. So, I guess HP is getting serious about mobile device. I’m guessing they are looking to compete directly with Apple in the new category that was created by the introduction of the Apple iPad.

HP and Palm, Inc. (NASDAQ: PALM) today announced that they have entered into a definitive agreement under which HP will purchase Palm, a provider of smartphones powered by the Palm webOS mobile operating system, at a price of $5.70 per share of Palm common stock in cash or an enterprise value of approximately $1.2 billion. The transaction has been approved by the HP and Palm boards of directors.