A few days back, PDA pioneer- Palm has been purchased by Hewlett-Packard for a whopping 1.2 billion US dollars. It’s a locked deal now, but media has come to know that industry giants Apple and Google were also interested in buying out Palm.
The most sought after invention by Palm till date, was the PDA. This invention shot the company to great heights. The company is a proud owner of many patented products in its portfolio like Palm V; Windows based Treo, Foleo, Palm Pixi and the Pre. After the launch of Palm Pixi and Palm Pre the company tried hard to come out of pilling losses. But continuing gloomy quarterly results forced the company to go for sale. Unfortunately after the invention of PDA there is not much to the credits of Palm. This paved the way for HP grabbing Palm.
It was a tug of war
There were mainly five contenders for the purchase of Palm. They included industry giants Google, Apple and Research in Motion. Palm’s Intellectual Properties and Patents acted as a piece of sugar to attract these flies. Both Google and Apple actually bided for the company fearing if they would not purchase it, their rival will surely do.
Apple placed a bid on Palm’s portfolio forgetting the fact that if successful then the company will have to manage two competing operating platforms. Low bid was the reason of Apple not winning the bid.
When Google came to know that Apple has lost the bid, they also did not show much interest in the company.
Rumors mills believe that apparently Rim (makers of Blackberry) was also interested in the deal. There were strong chances of Rim winning the bid for Palm, but at the last moment a higher bid from HP led Palm going in hands of HP.
Reasons for HP buying the company
Like other contenders HP was also interested in Palm’s intellectual properties and Patents portfolio, but one thing which was most attractive for HP was Palm’s new WebOS mobile operating system.
HP is mainly a Personal Computer and Enterprise service company. It is speculated that HP bought Palm for using Palm’s WebOS operating system to enter the ever expanding mobile device market. Whereas HP commented that they are willing to use WebOS for developing a tablet and Web connected printers.