Palm Acquisition By HP To Threaten RIM

Shares of Research in Motion went up slightly in pre-market transactions earlier this morning as news of the acquisition of Palm by HP sunk in.

The makers of Blackberry shouldn't rejoice though since it marks the arrival of a $125 billion gorilla that's worth more than RIM, Nokia and Motorola put together.

Palm will bring a combined software and hardware platform to HP, which made it clear that it purchased the mobile company primarily because of the critically acclaimed WebOS platform.

HP is likely to focus on the corporate and SME markets in the long run and use Palm devices as trojans to sell its own set of services & solutions to companies.

In the long run, RIM will find itself facing a formidable opponent and one which is likely to spend significantly on other acquisitions to complement the crown jewel.

Canadian-based RIM will be introducing an overhauled version of its Blackberry OS 6.0 operating system soon and has been announcing a pair of new models lately, including one that bears an uncannily resemblance to the Pre.

But overhaul, innovation has been pretty slow to come up north. RIM will need to up the ante soon; HP is hungry and has shown its appetite for more mobile revenues by swallowing Palm.