Hewlett-Packard has stepped in to buy the troubled smartphone maker Palm, announcing a $1.2bn deal on Thursday that brings to an end the growing doubts over the future of the personal technology brand.
The deal will catapult HP, the world’s largest tech company in terms of revenue, into the middle of the rapidly growing smartphone business in direct competition with a handful of other tech giants, including Apple, Google and Microsoft.
HP said it would pay $5.70 a share in cash for the company, representing a 23 per cent premium over its closing stock price on Thursday.
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