Mr. Market may have been surprised with Hewlett-Packard's (NYSE: HPQ) deal to acquire Palm (Nasdaq: PALM), but I wasn't. I actually singled out HP as one of four potential suitors several weeks ago.

Is HP crazy to be forking over $1.2 billion for a smartphone pioneer that was on the ropes?

I don't think so. I don't necessarily agree with HP's optimistic view of having the resources to take on Apple (Nasdaq: AAPL) or BlackBerry maker Research In Motion (Nasdaq: RIMM). However, I think that Palm's webOS now has a second shot at mattering, backed by a company with deep pockets and a true turnaround genius at the helm in Mark Hurd.

In a few years, if we're flipping over webOS tablets and cracking open other webOS gadgetry beyond smartphones, this deal will be a bargain in HP's quest to find a proprietary platform that it can build something great on.

And, hey -- if HP survived the costly Compaq acquisition, it can easily swallow this one down if it doesn't live up to the hype. 

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • IMAX (Nasdaq: IMAX) posted the strongest quarter in its 43-year history. Revenue more than doubled and last year's quarterly loss turned into a $0.40-a-share profit. Life after Avatar will be a hard act to follow, but new theater installations keep the company scaling in the right direction.
  • Sirius XM Radio (Nasdaq: SIRI) was scheduled to meet with Nasdaq OMX Group (Nasdaq: NDAQ) Thursday to discuss the satellite radio giant's delisting. It never happened. A funny thing happened on the way to the appeal. Sirius XM's stock closed with a bid above $1 for the 10th consecutive day on Tuesday, pushing it back into compliance.

Until next week, I remain,
Rick Munarriz

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Longtime Fool contributor Rick Munarriz recommends windshield wiper fluid when trying to look back. He does not own shares in any of the stocks in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.