HP will 'discontinue operations for webOS devices', may spin off Personal Systems Group

And just like that, Palm's baby was abandoned. Among the "other announcements" in today's press release about the potential spinoff of its entire Personal Systems group (PCs, mobile devices, storage) is a note that the webOS ecosystem HP snagged for $1.2 billion a year ago is already being ditched.

"In addition, HP reported that it plans to announce that it will discontinue operations for webOS devices, specifically the TouchPad and webOS phones. HP will continue to explore options to optimize the value of webOS software going forward."

Among slightly lowered estimates for its 2011 revenue, HP confirms it's in talks with Autonomy Corporation plc about a "possible offer" for the company. It's clear that a separation of HP the services / software company and HP the hardware manufacturer leaves no room in the lifeboat for the Pre and TouchPad family, but what happens next? We're sure there will be more pointed questions about what "optimizing the value of webOS software going forward" means -- we vote for a quickie sale to one of Google's disgruntled hardware partners or better yet, opening it up for some community hackery -- on the conference call scheduled for 5 p.m. Eastern.

Update: HP CEO Leo Apotheker confirmed on the company's earnings call late this afternoon that the Autonomy acquisition is considerably further along than just a "possible offer," and that it's expected to be completed by the end of 2011. He also made it clear that any possible spin-off of the PC business won't happen soon, and said that the company will take 12 to 18 months to consider its options, further adding that he is "taking ownership" of all of these decisions. As for webOS, Apotheker expectedly offered few specifics, but suggested that just about all options, including licensing, remain on the table.