PALO ALTO, Calif. ( TheStreet) -- HP's ( HPQ) 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.