HP to Acquire Palm for $1.2 Billion

HP has announced that they will acquire Palm for $1.2 billion. Palm’s current chairman and CEO, Jon Rubinstein, is expected to remain with the company.

It’s so interesting to me to watch how Palm went from “iPhone killer” to basically dead in the water in just about a year. Back in October, I suggested that Palm would have been better off focusing on non-valley mobile developers instead of caring only about the valley. Who knows now if they would have taken that suggestion if they would have gained more platform awareness and more consumer interest.

I hope that we will all do a deep dive into why Palm wasn’t able to grab the market share that it seemed everyone thought they would when the Palm Pre launched.

Under the terms of the deal, H-P will pay $5.70 per Palm share, a 23 percent to Wednesday’s closing price of $4.63. The NYT notes that shares in Palm have fallen 52 percent over the past 12 months.

Read more on the NYT and Paid Content.