HP says enough – kills WEBOS and considers selling PC business

HP (NYSE:HPQ – News) today commented on the recent announcement by Autonomy Corporation plc (LSE:AU.L.l – News). HP confirms that it is in discussions with Autonomy regarding a possible offer for the company.

HP also reported that it plans to announce that its board of directors has authorized the exploration of strategic alternatives for its Personal Systems Group (PSG). HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.

In addition, in a dramatic turn of events, Hewlett-Packard said on Thursday that it will stop selling hardware based on the webOS it acquired from Palm.

As part of its broad statement on Thursday regarding plans to consider spinning out its PC business, HP said “that it plans to announce that it will discontinue operations for webOS devices, specifically the TouchPad and webOS phones.”

Regarding the future of webOS, the company offered little certainty, saying only, “HP will continue to explore options to optimize the value of webOS software going forward.”

HP acquired webOS with its $1.2 billion acquisition of Palm a year ago, promising to use the software in all manner of devices from phones and tablets to PCs and printers. Despite the deal, HP was slow to bring out new products based on WebOS, and the existing Pre and Pixi devices lost significant share, both in the market and in the minds of consumers and developers.

The company touted the launch of the TouchPad last month as the first in a series of steps that would re-establish the operating system as a serious player in the mobile space. However, the product received lackluster reviews and poor sales, leading to a series of price cuts.

What is absolutely not clear is what impact if any this will have on Microsoft going forward.

So much happening in Tech…

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  • Philip Perkins

    Holy sh&t!

    What the heck is going on in this indusrty?