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HP Looking to Sell Palm, Amazon Interested?

By: , 9/30/2011 7:47 am | 56 comments

VentureBeat is reporting that a source of theirs, presumably inside HP, has confirmed that HP is looking for a company to come through and buy out all of those assets HP acquired last year when they bought Palm, such as webOS itself and likely those extremely valuable patents. The source also confirmed that Amazon is the closest of the bidders to finalizing a deal.

This could mean webOS will have a future on hardware, something which has not exactly been known since the big announcement from HP last month. This would also put webOS with a company that currently uses a highly-modified version of Android, one which doesn’t use Android like other licensees, and a company with experience running a successful app marketplace. Furthermore, Amazon has been proven to be willing to make risky investments, such as the Kindle and the recently-announced Kindle Fire. This would be a great suitor for Palm, with the sole exception of Amazon not currently having any phones. Perhaps they would start making smartphones and put webOS on those things. We hope this might be true because this could be the savior for webOS. Put it on those $200 Kindle Fires and watch the webOS userbase grow rapidly, possibly faster than it did with the fire-sale TouchPads!

What do you think? Do you think Amazon would make a good second suitor? Do you think webOS would truly grow with a company that plans to sell a full-featured tablet for less than half the price of the market leader? Would you buy an Amazon-branded tablet running webOS, perhaps a Kindle Fire 2? We personally are skeptical but believe this could be the one final deal for webOS that would truly make it go prime time, Amazon has the reach and the intent to invest in a risky operation with no guaranteed payday.

[Source: VentureBeat via Worldwide Tech&Science]

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About Arthur Thornton

Arthur is an 18-year-old webOS fanboy and developer. Arthur's first experience with webOS was in August 2009 when he got a Palm Pre. Since then he's owned many of the webOS phones produced, released several loved apps into the App Catalog, and even held an internship with HP's webOS GBU. Fresh off of that internship, Arthur is back at webOSroundup as a contributor.
  • http://www.atconnections.net Damdre2

    We would still have to wait for hardware. Maybe 1 to 2 yrs after they buy it and that’s to ****** long to wait

    • Mattbrad2

      One to two years? Amazon could simply build tablets with qualcomm hardware while the software team develops the software for other chipsets (which could take about 6 months to a year). No, amazon could easily hit the ground running with webos. Qualcomm is the intel of embedded systems hardware. Some of you guys act like their some chipset from another planet that only runs webos.

  • Namgod

    As long as I can find spare parts for my Pre+ and Verizon doesn’t sunset 3g, I can wait.

    • Smacedo

      I just got the Pre2 on VZW. Its great. Goo get one instead of the spare parts for your Pre plus

    • Bro

      I’m with you. As long as my Pre original keeps running, I’ll keep using it. Now that I can stream Amazon digital, Netflix and anything my i5 quad core overclocked beast runs via Splashtop, I’m not sure I’d want a Fire running webOS, but it makes a ton of sense if Amazon wants to get into the smartphone market. There’s a hungry consumer base waiting and ready, and I’d shell out the bucks tomorrow.

  • Jenny

    I would never buy Kindle WebOS version on it. I think Kindle Fire will sell since it has Amazon store and Android OS. I would hate having WebOS, it would not sell as good.

    • Dutch

      I actually love the Kindle App on the TP. One of the few apps I actually use. My actual Kindle sits barely used in my home office.

  • http://twitter.com/DeadTechnology DeadTechnology

    I just don’t know why Amazon would want a new OS.  They obviously put a lot of work into modifying Android to suit their needs and they already have an Android app Marketplace.  I’m just not seeing where this is going and would feel a lot better about HTC or a hardware company.  This reeks of patent grabbing to me.

    • Gr8tfullyblessed

      I see your point . . Everyone nowadays is on a frenzy trying to snatch up all the patents they can in order to beef up their infrastructure against competitors . . Lets just hope this isn’t the case and amazon is willing to put in the time to put out a smartphone that can compete

    • http://pulse.yahoo.com/_2L2YA5F7PWLSPGHPH2UU6KPVEM Scott M

      Part of the reason they *might* consider this is so they can make a Kindle/Tablet that doesn’t use Android. Microsoft has been signing licensing agreements left-and-right with companies that are building hardware and putting Android on it – they make more money on these fees than they do on currently selling WP7 hardware. If Amazon had their own OS they could circumvent having to pay these licensing fees – which MS will most certainly be looking to extract from Amazon for the Kindle Fire.

    • Fliedlice

      Agree 100%. All that work would be for nothing. And think of what they would do to webOS to make it look like their signature Kindle interface. Yikes.

      Not sure I like the idea as much as I did before the Fire was announced.

    • http://sorli.com sorli

      I agree and don’t see it happening besides maybe for the patents and protection Palm innovations provide.  On the other hand, why not extend their new market to a platform with a million units already on the market and selling like like hotcakes.  Oh, that’s too complicated and wouldn’t help either.  Sorli…

  • Gr8tfullyblessed

    I’m not entirely sure about this move but if it means more webos hardware then I’m in . . Dunno if amazon has the know-how to make quality phones . . It would be kinda weird to see the amazon brand on a phone but then again who knew they would be able sell to the masses with their tablets . . Exciting news for the webos nation indeed

  • Moderntimes

    I think it’s great that WebOS isn’t dead. And I think Amazon has proved that they are a true contender to Apple in the tablet space.

    At this point, I don’t think it matters. As long as WebOS gets out of HP’s hands as they self destruct.

    • Gr8tfullyblessed

      Totally agree . . Webos needs to abandon ship on HP’s sinking boat fast

  • http://twitter.com/PavedOffice Tim Johnson

    I’m not as worried about ‘know how’… HP has know how… They’ve just blundered every step. Someone to pick up WebOS would be great. I agree HTC would be the best match… WebOS has been touted by many to be the best operating system… which I believe. Android is like 3rd of 4th place IMHO. But right now, WebOS is like the best car in the world that has no wheels that fit.

  • Anonymous

    Maybe Amazon Board Member Rubinstein is pulling some strings with Bezos?  Wake me up when this is finalized…  I have other things to do   ;-)

  • Anonymous

    I don’t know, I think webOS might be a second citizen behind the Kindle Fire. Unless Amazon decides to keep Android Kindle-only and uses webOS to make general consumer products. But I still don’t see Amazon as the best for webOS.

  • Abe

    Amazon is a smart company and I think they could do a lot of amazing things with webOS. Whether they would buy Palm for webOS or for the patents is a different story. They could simply buy Palm for the patents to keep Microsoft off their back or they could buy Palm for both the patents and to have a cloud based OS since Amazon is all about “the cloud”.

    My hope is that if Amazon does buy Palm they make webOS a huge part of their ecosystem and actually commit to it. #savewebOS  !!!

  • http://pulse.yahoo.com/_ETPU6OFSJFCQGBM5T3TT3EJNSA cornelia

    Every time a new suitor story comes up, everyone has an accident in their pants. I hate to say this, but I don’t _want_ webos on the Fire. It would run very slow, it would lag. I don’t many people even now want to face the news, but webos as an operating system is hindered, and there isn’t any hardware or big corporation that will change that. It is inherently handicapped because of the language it’s in. It will always be like that, always. Why don’t you guys get that? You would think that the latest and greatest equipment that the Touchpad had would give it some kind of edge, but alas, it was still back up to its old tricks. And just because the webos engineers borrowed the ‘too many cards’ error trick from the homebrew, does not hide the fact that it is still huffing and puffing underneath it all. Amazon has a good thing going. They did a fantastic job ‘skinning’ Android so that it doesn’t in the slightest bit remind anyone of the OS. They have the streaming content, the books, the music, the storage…they have a good thing going. 

    • Ken

      I would have to disagree with you webos is great & if you don’t believe so you either haven’t used it or used it correctly

  • no spam

    if Amazon decides to keep webOS and not change the UI like they did with the kindle fire, and they release phones, I’m ok with it as I think Amazon could bring webOS to a much greater audience. If they’re looking to buy it just for patents, then I would stop buying from Amazon.

    I am not sure about them buying it just for patents and here’s why (my thoughts though). If webOS is actually in negotiations with multiple companies, and Ruby is still on board, I doubt Ruby (who is also on the Amazon board of directors) would want to have Amazon rip his baby apart. His interest is keeping webOS alive. If Amazon’s intentions are to just buy it for patents, I think Ruby would put a stop to that and start looking at the other bids (if there truly are any)

  • Anonymous

    I posted several days ago that Rubinstein was behind the Kindle Fire. You can see his fingerprints in it (figuratively speaking). But something tells me that if Amazon is in process of acquiring webOS, then they are doing it to make webOS shine. If there is anyone who knows the full potential of webOS, it’s Jon Rubinstein. All he needs is a team that is behind him 100%. And I think Amazon is that team. Keep in mind that the Kindle Fire has been in the works for over a year. Perhaps Amazon was one of the companies that bid on webOS when Palm decided to sell. But with the recent HP/webOS debacle, Amazon may be considering webOS again. This makes more sense to me.

  • Scotland

    There’s obviously behind-the-scenes bidding going on for the webOS software, division and related patents.  This is just like the Palm sale all over again.  We’ll continue to hear webOS/ rumors until a sale is announced.  Each suitor would have their own interests.

    For example, as possible suitors, we have HTC (could use the OS on phones/tablets), Amazon (interested in tablets and patents), Samsung (said they weren’t interested in owning webOS – they already own Bada and just signed a patent sharing deal with Microsoft), Apple (not rumored recently but bid on Palm, probably for patents), Facebook, other darkhorse possibilities (ZTE/Lenovo/Huwai/LG).  Did I miss anyone…?

    A recent report said that HP is continuing with webOS printer plans so any sale would require some sort of cross-patent/cross-licensing aspect that would give HP perpetual access/licensing rights. 

  • PalmOn

    HHas

  • PalmOn

    Has Amazon’s stock price dropped yet?

    Face it. Webos is cursed. The problem isn’t just mismanagement of the products. It is also that webos inherently has problems. Anyone who picks it up will have problems with their stockholders. Webos is sluggish and has a native calendar app that can’t even provide an event reminder more than one day in advance. The only reason to buy it would be to own the patents.

    Now don’t get me wrong, because I really used to love webos, and still love its user interface. But its just no longer competitive. And that’s the problem.

    • http://www.arthurthornton.net/ Arthur Thornton

      Quite the contrary, Amazon’s stock price actually rose after the news broke of this last night. It opened lower than yesterday’s close today but it did rise momentarily again after the news resurfaced.

      But, as is always the story with the stock market, prices fluctuate, especially when your stock is trading at $200/share. The minor fluctuations can’t be seen as investors freaking out, necessarily, so much as a retirement fund selling the shares inside Amazon (who has been having a negative week) and going to another company.

    • Malette

      Ah, palmon you always hang around because you love webOS. I disagree though. I think webOS is very competitive. It just needs a company that knows how to market and produce. Though I don’t much care for Amazon, it very well can be the right company. Do they really want it? Who knows there’s reason why so and reasons why not. I think whoever ends up with webOS or any other OS that truly wants to compete is either pay to create a bunch of useless apps and some useful ones or remove the brainwash apple has helped fill peoples heads with. For me I don’t need a bank app, a lotto app, a whatever else app. I just add a shortcut to my launcher and boom I’m there. The other benefits webOS offers me are far better. Sure it could improve, but they all can. All OS have flaws, android most of all. Everytime I use my husbands droid I want to throw it so I mostly don’t use it. Anyways glad your keeping the fire arguments always going palmon. Even though you only do it to try and get people mad, sometimes it helps us realize other stuff. Like for me why I love webOS and I prefer to stay here on a webOS loving forum then go to an android forum and talk about how crazy and buggy it is.

  • Raun

    Amazon already has the webos apps and marketplace built, and they are not taking on hardware by themselves in a vacuum. Win-win. Webos survives to fight another day. This deal appears to be already done.

  • Anonymous

    If I remember correctly, HP wanted webOS to work its printers because Android was not stable. They released 1 printer running Android, but had a lot of trouble with it and said so when that printer was sold. Not much said about that printer. Has Amazon found the same Android problems? That would explain why Amazon would want webOS.

  • Brother Al

    Comelia… What are you talking about? Seriously! You speak nonsense.

  • tt92618

    I see a lot of complaining about the idea of an Amazon purchase, but just let me point out that of ANY potential suitor, Amazon is the only company with the corporate infrastructure, experience and _vision_ to do anything useful with WebOS.  Say what you like about Bezos, but don’t say the man is lacking vision or guts.

    A manufacturer cannot handle WebOS.  Why not?  Well, _because_ they are manufacturers.  Manufacturers, by and large, are device centric and they (seemingly) have no clue about the concept of creating an end to end experience for the users of their products.  Apple is obviously different in this regard, but for most manufacturers, it is almost as if ‘ecosystem’ and ‘integration’ are foreign concepts to them.  They just don’t have either the vision or the desire to put in the sort of investment it will take to compete with Apple, and we’ve seen how well the alternative approach works out.

    Amazon has already demonstrated they have both the vision and the capability to to do this sort of work.  They have their own cloud architecture (AWS), they manage huge data centers, they manage a huge online store that provides both digital and hard products, and they manage a significant software development program.  They would be much more capable of doing something substantive with WebOS that would make it a viable force in the market.

    Listen, this is blunt: an OS that is disconnected from an eco-system for these kinds of consumer devices is destined to fail.  If all I can do on the thing is browse the web, then the device still has too many limitations for most consumers – the value story just isn’t there.  It doesn’t matter how cool it is, or how nifty, or how many propellers it turns on the hats geeks like us wear – it will not sell in a significant volume.  It has to be the gateway to services that consumers want, and ‘cool OS’ is not a ‘service’ consumers want.  Pair ‘cool OS’ with ‘highly integrated service offerings’ and that’s a different story.

    The sobering reality, folks, is that right now WebOS is dead.  It isn’t ‘almost dead’, ‘might be dead’, ‘probably going to die’, or ‘on life support’; it is DEAD.  Like a chicken with its head cut off, it may be flopping around a bit, but the lights are already out.  Unless someone comes along with the vision, capability, and means to do something valuable with WebOS, it is simply going to stay that way.  Amazon is a GREAT match in this regard.  It may mean the end of WebOS phones, but so what?  How would that differ from the current situation?

    • tt92618

      And by the way, HP putting WebOS on printers is like a 10,000 pound Gorilla trying to shove a parakeet through a straw; yeah, it might get it through there, but whatever comes out the other end isn’t going to have the substance, function, or form of what went in.  So if you think putting WebOS on a printer is a good thing, then you’ve missed the boat.

      WebOS had trouble running on a dual-core system with lots of dedicated memory.  What do you think HP is going to have to do to it to get it to run on a printer and still manage to be a profitable device?  Like the parakeet mentioned above, what comes out the end of that process is not going to be ‘WebOS’; every printer HP releases with ‘webOS’ on it is just another nail in the coffin of WebOS.

    • Malette

      Unless some one comes along…….? Well you say it’s dead then say unless. Last I checked that’s not how it works. Never heard a doctor say sorry, he is dead, unless we can find someone to come along and get his heart going again. Appreciate your opinion and what your trying to put in with your “knowledge”, but I find some of your statements irrational in some respects.

  • ReneM

    I had one concern with Amazon getting webOS, besides you know only getting it for the patents, that would be having it so locked down that it would hamper devs like the webOS internals guys.  But then I saw this story http://www.businessinsider.com/kindle-fire-rooting-2011-9  They seem to have the same attitude that Palm has in terms of hacking on their devices.  All in all I think Amazon and webOS would be a good fit.

  • Another rumor

    If amazon buys it they should use it for tablets and license it to phone manufactures.

  • Eid

    Ny times just mentioned the amazon deal. Sounds a lot more real now than before although it could be mostly for patents that palm had.
    – sent from webOSroundup XL

  • Jason

    All I care about is who ever owns webOS has a passion for it to be the best it can be. And will do what it takes to do that and keep it that way. Right now it is still the best mobile OS, in my opinion, and I would hate to see it die if nobody cares to continue with it. Right now there is the 2nd largest tablet share with webOS. We can’t count smrtphones since we don’t have current generation fleet of them. However it is clear from the initial success that with quality 3.5″, 4″ and 4.5 inch devices with verticle, horizontal, and only virtual KB options webOS will be 2nd in the smartphone share as well. The only reason android has it’s market share is because of a form factor and design for everyone. Heck they have android on devices that are nothing more than fancy dumbphones since they basically can only do dumbphone stuff. So with a fleet of smartphones webOS should have no problem taking 2nd in smartphones.

  • Malette

    First off this makes my heart skip a beat. The hope that webOS survives is always there. However won’t get too excited for dissapointment. There’s been too many rumors. Though Amazon wouldn’t be my first pick and find it hard to believe after all they have invested in tweaking android to their needs I would still be happy if webOS lives. Even if it takes a year for hardware I can wait. I don’t think webOS has anymore flaws to it’s operating system than any other. It is a great OS in my opinion, of course that’s why it’s my choice of OS. Amazon has great market power and large enough to strike great hardware parts deals. They are on the right track with low priced tablet that is actually usable vs. Coby and Sylvania. I just hope HP doesn’t mess it up by asking more than they can get out of it right now. HP did themselves a great disservice by lowering the perceptive value of webOS. Alas until webOS is completely dead I will remain an optimist. Even when it’s dead I probably will still keep hope. As it lays right now it is in a vulnerable state but by no means do I believe it’s dead. I could see Amazon getting into the phone business and if not actually having more power and ability to find licensee partners. Here’s to hoping our hearts don’t get let down again. Let webOS thrive!

    • tt92618

      it IS dead.  Life as an glorified UI for a printer _is_ death for webOS.  Saying otherwise is like asserting that a taxidermic animal is still alive because it still looks the same on the outside.  To get WebOS on a printer, HP will have to gut it to the point that it is just a nice to look at UI.

      • Malette

        I believe your analogy makes no sense. If anything it would be more that people like you are taxidermist that have your eyes on an animal that is ill or on life support. Just because it has been hurt doesn’t mean it doesn’t have value as a living thing and all should be given up and have it killed and stuffed. Be it a printer ui, a tablet or phone os, or a form factor for web/app development, or even for just its patents; there is value in webOS and that is why I don’t see it as dead. It is not just because I am a fanatic though that is a reason not the only one. I of course still hope the value is seen and utilized in phones and tablets.

  • Raun

    Hp absolutely canNOT sell this to a hardware manufacturer and watch webos succeed, so this is their only opportunity to save face and recoup their investment. HP has never been a successful consumer company like Amazon. Their consumer products are garbage. Touchpad is the best they will ever produce for the consumer. If amazon can strip the inefficiencies from android, there’s hope it can do the same for webos. There isn’t a lot of downside now since the kindle fire is ready. The next release with webos is a no-brainer. They aren’t starting from scratch & their servers aren’t going to crash from too much demand. When amazon’s name came up a year pre-hp, then, yes, there’s some doubt. Amazon, however, is all in with a strategy and most notably, content to push in a way no other suitor can use the os to monetize. Hp can save face by saying, see? We had the right idea but the wrong manufacturing infrastructure. Webos has the nine lives of a cat, and I’m very surprised to hear myself say this. It won’t stop me from my iphone fix on sprint next week, but I’ll be picking up another touchpad sooner or later after returning mine pre-firesale for a refund

  • Spikea4

    I think it maybe great for the touchpad, but I think that would be the end of webOS phones!

    • tt92618

      Not to put too fine a point on it, but the end already came for WebOS phones – on August 18, to be exact.

      I’d like to see Amazon by it, use it for their tablets, and license it for Mobile devices.  However, I’m not sure I can see the profit story for them in that, and i]I’m not sure it would benefit them much from a platform perspective.

  • eid

    I’m not sure amazon wants to get into the bruising phone market. I don’t think anyone has the guts or wants the risk to buy all of webOS. And I’m sure HP wants to keep some of webOS for themselves. What about a smaller bet and shared risk pool? HP keeps webOS for printers and pcs, HP runs the webOS development group or spins it off as a separate group, HTC or another up-and-coming manufacturer gets the phone webOS rights, and Amazon gets the tablet rights for cheap. And all involved parties get rights to the patents to protect themselves from Apple, Microshoft. This may not be a licensing deal as much as a defined shared rights to webOS so they don’t end up competing among themselves. If the cost of these rights is not too expensive, this can be a reasonable option. 

  • Dub94

    I think it would be great. Amazon is a very ambitious company that has come along way since 1994. From a business standpoint they have a good Android app catolog so those developers would want to also develop app for webOS. They already have a great relationship with Palm with the mp3 download for music and have developed a kindle reader for the Touchpad. Who said they would not want to be able to have a market for their own Os and still market to android users. As far as phones, like I said their very ambitious, a few years ago the idea of Google getting into the phone business would have sounded far fetched. I would not be surprised to see an Amazon search engine one day. Oh and their going after Netflix by streaming movies and TV as well. Id love to see a future that included webOS and Amazon.

  • Chirurgie

    Any news about potential life of webOS is good news! As for Amazon, I think they can make a focused tablet like Kindle Fire using webOS. I just hope it’s not a patent grab. Not sure if they will get into phone market. If webOS tablets under them take off (& it will if it’s a ‘cheap’ Kindle version like Fire is), inevitable phone webOS will happen, even if licensed out.

    Love Amazon anyway as a company. Been very pleased with their service all these days

  • Anonymous

    The only company that would make sense is RIM, they are in the business of phones and tablets and amazon has just entered the tablet market and no presence in the phone market so RIM which is now failing to get QNX on anything would benefit alot from webos, my only concern is that palm/hp was the only company that was competing with apple in terms of hardware and software synergy, now there is no company in this industry that makes software and hardware which will only mean that apple will keep on dominating!

    • tt92618

      Completely disagree.  RIM thinks that their business is making devices – they so far haven’t shown the least bit of smarts surrounding the creation of the kind of content / services eco-system (not to mention the end to end experience) that these kinds of devices need.  

      RIM is already struggling – do you seriously think a different operating system is the fix to their troubles?

      If RIM doesn’t change course massively in the next 3 – 4 quarters, they’ll be joining WebOS in the casualty list of the mobile wars.

  • Sudsbury

    This is an intriguing sale and the only one that I think would work. pAmazon would be a great product. Amazon gets a great UI and a patent portfolio that protects it, webos gets a company with massive access to all the content we’ve been missing out on.

  • Anonymous

    Doesn’t make sense.  Wishful thinking.

    HTC and Samsung are they only hopes for WebOS HW.

    • tt92618

      I disagree – I think that would guarantee death for WebOS because these guys don’t have the vision or the desire to create the kind of content and services eco-system that WebOS devices will need to be successful in the market.  Amazon already brings most of that to the table.

  • Guish

    I would REALLY like Amazon to rebrand the TouchPad Go as the Fire2. That could be a lightning turnaround.

    I think Amazon has the consumer pulse much better than HP. I wouldn’t be surprised is some old Palm talent comes back to the platform if this happens.

  • eid

    Amazon is one of the few companies that can stand up to google and apple and has the cash to pay for webOS.  Amazon will probably get webOS for cheap since HP is clueless in valuation of assets and Amazon understands market value. But I wouldn’t expect Amazon to keep webOS as is. Much as I prefer otherwise, I would expect amazon, if it bought webOS in its entirety, to use some of webOS features on top of the Android build.  (Plus use webOS patents to protect its future devices)  But if this is the actual case, then still this scenario is better than burying webOS completely in the grave.

  • http://twitter.com/NancySteopher Nancy Steopher

    its really doesn’t make any sense to buy OS.
    http://www.techiecop.com/

  • Domi

    3 good reasons for amazon to take up WebOS.
    1. Since google bought moto and its phones, it has much less reasons to support HW Mfrs with a good android. See Android 3.0 going closed source and samsung pushing its bada forward. Therefore amazon shhould be wary of android.
    2. The kindle fire is basically a pre without the phone part and a modernised TI processor. That IMHO shows thé influence of Jon Rubinstein
    3. They need a sexy interface for their devices for their customers to access their hard and soft wares. They already all the clouds they need
    4. They can sell cheap devices as they do not need to make profit on the terminal. They certainly do not have a 50% margin on the kindle fire at
    USD200!
    OK a small con: webos will certainly not do on e-paper :-)