A new report from VentureBeat sheds some light on the HP decision making process that ended with webOS being open sourced a few weeks ago. Sources within HP say that the company was asking for a whopping $1.2 billion for its Palm and webOS assets. For those of you keeping score, that is exactly what HP paid for Palm back in April of 2010.
HP wanted desperately not to take a direct financial hit on Palm as negations were on-going in late 2011. Multiple potential suitors were rumored including Amazon, Facebook, and HTC. Perhaps the laughable price is the reason none of those deals got very far. HP seemed oblivious to the fact that Palm lost value since it was purchased, and in the wake of the aborted TouchPad launch.
Unable to find a company willing to pay the obscene asking price, HP now hopes to use webOS, while investing fewer resources in the newly open project. What do you think would have been a fair price for HP’s Palm assets?