It looks like the bad initial reviews of HPs TouchPad have driven the company over the edge, with webOS facing discontinuation.
The relevant passage of the press release reads as following:
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.
Stay tuned for further info as we get it!