Hewlett-Packard Company (NYSE:HPQ) will sell its mobile operating system, WebOS, to LG Display Co Ltd. (NYSE:LPL), according to an official announcement. Hewlett-Packard officially abandoned the mobile operating system in 2011, but the company kept the unit that developed it. The move comes as another development in the company's campaign to turn itself around.
The price that LG Display Co Ltd. (NYSE:LPL) will pay for the operating system will also include the source code engineers and the web sites related to the software. Patents that HP holds and are vital to the operation of the system will be licensed to LG. The tech company will put the system to use in its televisions, rather than its mobile devices.
The WebOS unit will be merged with research and development divisions it already has in Silicon Valley. The company has pledged to support the members of the public who are still hanging on and using devices with the operating system. It has no plans to continue offering the system on mobile devices, however.
Back in 2009, Palm, one of the most famous pioneers in the mobile computing arena, released WebOS. A few months later the firm, including the operating system, was acquired by Hewlett-Packard Company. After releasing one device running the system, the HP TouchPad, Hewlett Packard abandoned the sstem, but has still provided updates since taking the devices off the shelves.
Hewlett-Packard Company (NYSE:HPQ) shares are down a fraction on today's trading, reflecting a general slump in Monday's market. The firm has been under-performing for years, and constant claims that the firm is turning around have been followed by little to no proof of the fact.
In November 2012, the company announced that it faced a huge write down on its acquisition, Autonomy, after fraud was revealed at the company. Investigations were announced into the fraud, putting more weight on an already pressured company.
Investors have been very optimistic about Hewlett-Packard Company (NYSE:HPQ) since the start of 2013. The company's shares have risen by a third since the new year began. In the last twelve months, however, the firm's shares have fallen by almost 30%. It's been a mixed bag for a company still trying to find its niche as the PC market collapses around them.
The sale of WebOS is the end of a chapter for Hewlett-Packard Company (NYSE:HPQ). It will no longer seek to go its own way, seeking instead to release tablets on other established operating systems.