Hewlett-Packard to Buy Palm for $1.2 Billion

Hewlett-Packard said on Wednesday that it would acquire Palm, the struggling cellphone maker, for $1.2 billion in cash. Palm had begun exploring a sale as it continued to struggle in the marketplace.

While the company has won acclaim for webOS, its new smartphone operating system, its new products like the Pre and the Pixi have failed to draw customers away from rivals like Apple and Research in Motion.