(By Balachander) Hewlett-Packard Co. (NYSE: HPQ) is selling its mobile operating system webOS to LG Electronics. Financial terms of the deal were not disclosed.
LG agreed to acquire the source code, associated documentation and related websites associated with webOS to enhance its Smart TV technology.
In addition, LG will receive licenses under HP's intellectual property (IP) for use with its webOS products, including patents acquired from Palm covering fundamental operating system and user interface technologies.
HP's sale of webOS allows it to focus its resources on strategic business opportunities such as cloud computing.
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Under the terms of the agreement, HP will retain ownership of all of Palm's cloud computing assets, including source code, talent, infrastructure and contracts. HP will continue to support Palm users.
HP had acquired Palm - a provider of mobile computing devices - for roughly $1.2 billion in 2010.
LG will assume stewardship of the open source projects of Open webOS and Enyo.
The companies does not expect the deal to have a material impact on either company's financial statements.
HPQ shares inched 0.16 percent higher to trade at $19.23 on Monday.