VentureBeat is reporting that a well-placed source tells them that HP is currently looking to rid itself of Palm as soon as possible, and that Amazon is the closest to finalizing the deal, among a handful of contenders.
"It also appears that HP has been eyeing Amazon for some time as a potential webOS partner. In an interview with This is my next in July, Rubinstein revealed quite a bit about having Amazon use webOS in its future tablets:
So, we’d like a partner that would allow us to expand the webOS ecosystem… There’s a variety of different sets of a characteristics to qualify as a good partner. I would say Amazon would certainly make a great partner, because they have a lot of characteristics that would help them expand the webOS ecosystem. As to whether there’s been discussions or not… that’s obviously not something I’m going to comment about.
HP paid $1.2 billion for Palm in 2010, but Amazon will end up spending a fraction of that if the deal goes through. Given just how badly the TouchPad failed, HP will likely offer what’s left of Palm at a major discount, especially since Amazon woudn’t be interested in resuscitating now extinct webOS hardware. "
Source: VentureBeat