HP details wasted webOS money: $1.66 billion in expenses after the acquisition

HP details wasted webOS money: $1.66 billion in expenses after the acquisition
HP acquired Palm over a year ago for $1.2 billion but its expenses didn’t end on that - the company has released financial results which show that it has spent even more, a whopping $1.66 billion on winding down the webOS division. 

The costly process includes $885 million from the “impairment of goodwill and purchased intangible assets,” and an additional $775 million from one-time charges around the wind-down. Those two add up to make the staggering $1.66 billion number, not a very heartwarming figure for HP investors.


It’s saddening to see the huge pile of cash that has been invested in what’s now abandonware, or on the way to become abandonware. WebOS is a glaring example but it’s not the only one - MeeGo was officially proclaimed dead after billions of expenses and Symbian while supported until 2016 is headed that way too. Windows Mobile could also be put in that category.

Now, if only HP knew what it’d do with webOS, but something tells it’d be hard to convince those investors that pouring more money into the platform is a good idea...

source: HP via AllThingsD

FEATURED VIDEO

7 Comments

1. snowgator

Posts: 3620; Member since: Jan 19, 2011

More than any other OS, I am smitten with WeBOS. Yes, my Palm Pre Plus is a glowing exmple of how not to build hardware: unresponsive screen, lag, freezes, out right poor camera, and a slider that wobbles AND is hard to move. I do not even know HOW you could engineer a slider that does both. But WeBOS is just plan fun to use. It is a simple concept that was executed with style. It was designed for multitasking. It's sensor driven responses was also an ingenius idea. Everyone I showed it too thought it was a great OS. When HP, a known top notch hardware builder, bought out Palm I thought it was a true win/win. A natural. A company that was in it for the long haul. I will just say what I always say when I vent about the death of WeBOS. What a complete waste.

3. ayephoner

Posts: 858; Member since: Jun 09, 2009

have you rooted it? i had a ppp about a year ago, rooted it and overclocked it and it was absolutely amazing. it had a pretty good build too, i thought. i sold it to a freind and since it has developed issues. upon buying that phone, i really thought my next device would be webOS, no question. so sad thats not true. you know ICS is borrowing a bunch of ideas from webOS? im really excited to see it in action.

2. GYNGA

Posts: 19; Member since: Dec 08, 2010

As I know Sony is planning to buy webOS, don't they?

4. putes

Posts: 38; Member since: Nov 03, 2011

I've say it before, kill webOS before it hurls earth into a black hole and destroys us all.

5. ardent1

Posts: 2000; Member since: Apr 16, 2011

And you wonder why most companies don't want to compete in the tablet space. The initial write down of HP TouchPad was $100 million. But considering the $690 ($142 + $548) million charge and pro-rata that charge over the actual devices produced, the touchpad debacle is easily $400 to $500 millions. HP had to produce a second run of tablet to smooth relations with its suppliers -- it was the right thing to do, but damn it was costly. I don't think companies like HTC, Samsung or Motorola (before the Google merger) could survive such a hit. $788 million in total charges divided by $500 equals to 1,576,000 iPad2 16 GB Wifi. Said differently, HP could have bought and then donated 1,5760,000 iPad2 at MSRP rather than take that huge hit.

6. ZEUS.the.thunder.god unregistered

"if only HP knew what it’d do with webOS", stupid HP.

7. gtrxman

Posts: 137; Member since: Sep 10, 2011

Phone Arena, please leave the financial commentary to business publications. The write down of goodwill is not an additional expense but a write off of part of the purchase price. That amount is NOT in addition to the purchase price.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.