• by Mark Walsh  @markfwal, April 28, 2010

Hewlett Packard announced today it's buying struggling mobile phone maker Palm for approximately $1.2 billion, or $5.70 per share in common stock. The transaction has been approved by both the HP and Palm boards of directors and the regulatory process is expected to be completed by the close of HP's third quarter, which ends July 31.

“Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices,� said Todd Bradley, executive vice president, Personal Systems Group at HP, in a statement announcing the deal.

But at least one mobile analyst isn't optimistic about HP's move into the mobile market. "HP doesn't need the Palm brand. The IP (intellectual property) helps an existing player not a new entrant. We don't think the WebOS platform is viable long term in the face of its competition and HP could sweep up PalmÂ’s people individually at a much lower price," said Forrester's Charles Golvin in an early take on the acquisition.