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HP Buys Palm For $1.2 Billion

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Ending months of speculation about Palm’s fate, HP (NYSE: HPQ) has agreed to buy the mobile company for $1.2 billion, or roughly $5.70 a share.

Palm (NSDQ: PALM), which was running short of cash and struggling to compete against the Apples and Googles of the world, will now have HP’s deep pockets and worldwide scope. While HP is no stranger to the mobile phone world — with its line of iPAQ phones — it has a lot of catching up to do and could benefit from branching out to phones and tablets from its laptop- and PC-driven lineup.

Generally, Palm’s technology is viewed as solid — it was just poor timing that hurt the smartphone-makers’ chances. Of all the companies rumored to be interested in Palm, from Dell to HTC and Huawei, HP was never considered a likely candidate. Palm