Could Amazon be buying Palm?

With the launch of Amazon’s Kindle Fire, which is amidst a sea of Android tablets, what could help set the Kindle Fire apart from the rest of the competition is perhaps with new software. There are rumors that HP has been trying to unload Palm onto someone else, and the rumors are pointing at Amazon to be the purchaser of Palm, and we’re guessing along with webOS.

Despite the HP TouchPad failing to make waves that HP expected it to make, there are still fans the platform and it has been said to be able to multitask a lot better than Android, which means that Amazon’s future Kindle devices could juggle games, books, movies and music with a lot more finesse than current Android tablets and even the iPad (which isn’t really true multitasking to begin with), making their products real “iPad killers”.

While HP may have spent $1.2 billion on Palm last year, it looks like Amazon could be getting it for a fraction of the price, especially if HP is desperate to unload it ASAP. Would an Amazon tablet running webOS do better than HP’s TouchPad? I guess we will have to wait and see.