Facebook Should Buy WebOS, Jefferies Analyst Proposes
Well, here is the weirdest idea of the day so far.
Jefferies analyst Peter Misek wrote in a research note this morning that Facebook would be the best buyer for Hewlett-Packards WebOS software business.
It is also important to note that Misek thinks none of the other potential suitors are likely to bid.
Many of the natural potential buyers for WebOS seem content with keeping their opex low and dual-sourcing their OS from Android and Windows, including Sony Ericsson, ZTE and Huawei. Others have spent resources internally developing an OS, including Samsungs Bada, Baidus Yi and Amazons upcoming Android offshoot). HTC has said that they would consider buying WebOS but are not in a hurry. Nokia has tied its future to Microsoft. Due to Facebooks scale, developer community, and movement toward media (e.g., music) and communications (Messenger), it is possible that an acquisition of an OS asset like this could be a good option. Checks with developers indicate that they would support a potential Facebook OS, and industry sources have noted Facebooks historic interest in a mobile OS or heavily influencing one.
Misek notes that carriers and to some degree handset makers want a third viable smart phone ecosystem to go along with Apple and Android. Windows is the front-runner, but historically Microsofts mobile strategy has been poorly executed, he writes. An acquisition of WebOS could allow another player to take advantage of any stumbles. Also, some Android vendors are concerned that Googles acquisition of [Motorola Mobility] could lead to vertical integration and leave them with only Windows.
Id note that HP only paid $1.2 billion for Palm; you would have to think Facebook could get WebOS for that much or even less, given the paucity of bidders. I have no idea if Facebook really wants to be in the OS business, but they do have huge reach, with 750 million users, and they have a proven ability to work with app developers and make them successful. (Hello, Zynga!) Whether Facebook actually wants to compete with the likes of Apple, Google and Microsoft in the mobile phone business remains to be seen.