Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Oracle interested in HP's WebOS: Why it's not so nuts

By | November 7, 2011, 7:10pm PST

Summary: Oracle could collect some potentially valuable patents if it acquired HP’s WebOS.

Oracle reportedly is interested in buying HP’s WebOS and the move may not be as crazy as it sounds.

Reuters is reporting that HP is pondering a sale of WebOS that would get “hundreds of millions of dollars” but not enough to break even on the Palm purchase.

The real kicker in Reuters short story is that Oracle is one of the companies interested. At first blush, the Oracle interest sounds a bit nutty, but does make some sense.

Here are a few reasons why the deal isn’t so crazy:

  • Oracle is trying to sue Google into oblivion for Android. Oracle wants billions from Google and a trial has been pushed off until 2012. A purchase of WebOS would give Oracle more patents that could be used as ammo in that lawsuit.
  • The return on a WebOS investment could be delivered via a lawsuit. If Oracle’s lawsuit vs. Google doesn’t work out, WebOS could be leveraged elsewhere.
  • A WebOS purchase could be a thaw in relations with HP. The Oracle-HP relationship is strained to say the least. However, new CEO Meg Whitman may be able to improve relations. If Oracle took WebOS off HP’s hands it may be a sign of detente.
  • Oracle is now a hardware player. Some of that WebOS intellectual property could come in handy in some form.

Despite those aforementioned reasons, Oracle is probably a long shot to buy HP’s WebOS. However, crazier things in tech have happened.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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OpenSolaris, for one
cjc5447 9th Nov
@914four Oracle hates open-source, it has proved over and over it will squeeze every nickel it can out of its IP, even at the risk of alienating its customers (i.e., PeopleSoft acquisition). OpenSolaris was killed because they wanted to take back control of Solaris in house. Personally I think they shot themselves in the foot with that decision, but what do I know.
... when you already have enough to destroy the entire Earth three times over. It's a completely pointless waste of money. Patents are a waste of money--they only subtract value from the system, they don't add it. The more Oracle (or anybody else) tries to turn itself into an "intellectual property" company, the less actual product it will sell.

When a company starts litigating, it stops innovating.
@ldo17

"When a company starts litigating, it stops innovating. "

Ain't that the truth.
0 Votes
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not true
otaddy 8th Nov
@smulji Apple has always been litigious.
So why doesn't google itself buy it and squeeze some of those killer features into Android?
@VanDerLaars
Google already hired the head WebOS dev after HP acquired Palm. Ice Cream Sandwich (Android 4) is said to have quite a few of his touches implemented. I won't feel bad leaving my Palm Pre knowing WebOS will live on some way.
Selling to Oracle would be the death to Palm and WebOS
0 Votes
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Palm died a long time ago
otaddy 8th Nov
@ShqTth WebOS is on its way to death too.
@otaddy Ya but Oracle is the most evil death imaginable.

WebOS has no reason to die, just it has to be properly marketed. Not sure why the retards at HP can't figure that out. Even Palm did a better Marketing Job then HP, and Palm was able to survive all these years.
@ShqTth: Totally agree. WebOS in Oracle's hands is just a weapon, not a true environment anymore. Unfortunately, WebOS and Palm are dead.
@ShqTth I don't understand this statement. Name one technology that Oracle has bought that it has killed off?
Everyone said that buying Sun would be the death of SPARC and Solaris, yet Solaris 11 was recently released feature rich and the T4 is the first SPARC in a while that can compete with Xeon performance-wise. Sun Rays are getting new feature releases at almost four times the rate they were under Sun. I don't get, can you elaborate on what you are thinking?
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OpenSolaris, for one
cjc5447 9th Nov
@914four Oracle hates open-source, it has proved over and over it will squeeze every nickel it can out of its IP, even at the risk of alienating its customers (i.e., PeopleSoft acquisition). OpenSolaris was killed because they wanted to take back control of Solaris in house. Personally I think they shot themselves in the foot with that decision, but what do I know.
Why sell, could they go to bed together on this ?
0 Votes
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From the Reuters article (linked):

http://www.reuters.com/article/2011/11/07/us-hewlettpackard-webos-idUSTRE7A66UM20111107

HP is seeking council from Bank of America Merrill Lynch wrt the disposition of it's Palm/WebOS asset. Well, B of A is certainly familiar with bubbles, no? Why not the patent bubble too?

Hopefully, Larry Ellison is smart enough to nix (pun intended) this idea. Oracle was gaga about Java long before they acquired Sun Microsystems. And IMO they are not acting as a patent troll in their current suit against Google over Dalvik. However, acquiring Palm/WebOS for its IP would put them over the edge.
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Next gen WebOS Tablet
Detfan 8th Nov
I've got 4.5 months of excellence with my HP Touchpad, which, of course, is because it runs webOS. I can't wait for the next gen unit, running webOS 4.0. Look for it next September. You all can guess who will make the hardware!! Can't wait!
I think were Oracle to buy webOS, it would still be curtains for the consumers who love its devices. Oracle is so enterprise focused that I can't imagine them ever putting out anything like what Palm and HP did - they would probably just get it for the patents. And if they did decide to do hardware I more see them targeting it towards RIM's business market. Bottom line, webOS as we now know it would still be dead...probably!
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Backfire
tkejlboom 8th Nov
I think it would be very bad for Oracle's case if they were to continue increasing their mobile patent portfolio and not increasing their mobile product offerings. Most people already know Oracle is a troll. Going about and aggressively proving it would be a bad idea.
For the behavior to not be "nuts", you'd have to presume that the current patent atmosphere and system are not "nuts". In short, you'd have to be blind or crazy.
Google should buy WebOS just for the patents, since they have the deficiency in numbers when it comes to the patent portfolio for mobile technologies.
0 Votes
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Google should be able to buy WebOS for the patents and use the features that are great in WebOS. I could imagine IOS envying Android.
I hope that Oracle does buy WebOS & WebOS never gets anywhere...

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