This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HP Would Be Foolish to Sell Off WebOS Gold

PALO ALTO, Calif. ( TheStreet) -- HP's (HPQ - Get Report) rumored plan to sell off its acclaimed WebOS software would be a foolish move for the tech giant, carving off some of the sexiest intellectual property in its portfolio.

Citing unnamed sources, Reuters reports that HP is looking to sell the WebOS software acquired as part of the firm's $1.2 billion purchase of Palm.

HP has yet to respond to TheStreet's request for comment on this story, although at least one analyst thinks that a WebOS sale would be a step in the wrong direction.

"The real opportunity is using this OS as an engine that drives printer interactions between various devices," explained Avi Cohen, managing partner at Avian Securities. "For example, to connect your camera to your printer -- this gives them a tool to do that."

HP pulled the plug on its WebOS-based hardware during the summer, but has described the software as being "strategically important" to the company.

While disappointing TouchPad tablet sales made relinquishing WebOS hardware seem like a relatively easy decision for HP, various options exist for the WebOS software, such as licensing it out.

"I think that the chances are that they just license it out, somehow look to leverage it," said Cohen, noting the software's strength in multitasking and video playback.

Keeping hold of WebOS would also strengthen HP's arm in the increasingly fierce tech patent wars, he added.

"You have got some IP protection [with WebOS]," he told TheStreet. "So if [HP] wants to move in the handset and tablet direction [again] it gives them at least some IP protection against others."

HP has already said that it is confident of making money from WebOS, suggesting that licensing deals are likely.

Reuters, however, says that a sale could bring in "hundreds of millions" of dollars, but would not come close to the cost of the $1.2 billion Palm acquisition.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
AMZN $507.08 0.00%
IBM $121.04 0.00%
HPQ $9.42 0.00%
INTC $28.64 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs