Hewlett Packard is discontinuing operations for webOS devices, including its failed TouchPad and webOS phones.
Although the move effectively kills off webOS, the corporation insisted it would "continue to explore options to optimize the value of webOS software."
HP also confirmed that its board of directors had "authorized the exploration of strategic alternatives" for its Personal Systems Group (PSG).
"[We] will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction," the company explained in an official statement.
Abhey Lamba, an analyst at ISI Group in New York, told Bloomberg the move could help HP CEO Leo Apotheker free up resources and expand the corporation's cloud services.
"This is the direction we want him to take... Get out of a low- margin business and focus more on his core competency, which is software."
Mark Margevicius, a Gartner Inc. analyst based in Cleveland, Ohio, expressed similar sentiments.
"This is clearly a financial decision on their part to abandon a business that wasn't generating nearly enough margins... It's the boat anchor that's keeping things at bay."
Note: HP is currently is reportedly close to a $10 billion deal to acquire British software company Autonomy. Hewlett Packard acknowledged the negotiations in an official press release, but did not offer additional details.