Wednesday, April 28, 2010

HP to buy Palm

HP and Palm announced that they have entered into a definitive agreement under which HP will purchase Palm at a price of $5.70 per share of Palm common stock in cash for an enterprise value of approximately $1.2 billion. The transaction has been approved by the HP and Palm boards of directors.

Two thoughts:
1) This is a great plan for HP because we all know how well the acquisition strategy worked out for Fiorina.
2) At least it's a good buy at $5.70 a share for a company that IPO'd at $38, moving to a high of $165 and closing at $95 on its opening day.