A $1.2 billion (£791 million) bid has been put on the table by HP in an attempt to purchase smartphone manufacturer Palm.
Palm has faced poor sales after launching its first smartphones based on the webOS platform and many potential purchasers have been implicated in takeover deals, with Palm actively seeking an acquisition.
Taiwanese manufacturer HTC was initially one of the likely contenders, but it has since stepped out of the running.
HP says that if its bid is successful, it will further invest in the webOS platform, as well as in the creation of new Palm-branded smartphones which use this critically acclaimed but commercially ignored operating system.
Palm has not only got some innovative software and products under its belt, but it also owns significant patents which would benefit any new owner after taking control, according to HP’s Todd Bradley.
Mr Bradley said that Palm’s technology would enable HP to assert itself in the mobile phone market, suggesting that his firm is planning multiple releases if the acquisition is successful.
Mr Bradley also emphasised the significance of the intellectual property owned by Palm, as well the manufacturer’s ability to provide a unified experience between physical devices and the software that is on board.
If HP enters the mobile market with the backing of Palm technology, it will be going up against the big boys over at Apple and Research in Motion (RIM). The dominance of both the iPhone and BlackBerry range is not an inconsiderable challenge to face, but adding Palm’s experience to its arsenal could prove to highly profitable HP.