Thursday, 09 October 2014 17:00
The trend in recent years is for companies to become larger and acquire as many other divisions as possible but as of late that trend seems to be going the other way. Much like Ebay and Paypal announced their split a couple weeks ago, HP has announced that they will be dividing into two companies, Hewlett-Packard Enterprise and HP Inc. One company will be dealing with the server and enterprise products while the other side will be worrying about the personal computing side. From the press release it seems like HP will be continuing business as usual and investors and customers shouldn't see too much of a change but only time will tell if this is the move that is needed to keep HP relevant. You can read the entire press release over here.
HP (NYSE: HPQ) today announced plans to separate into two new publicly traded Fortune 50 companies: one comprising HP’s market-leading enterprise technology infrastructure, software and services businesses, which will do business as Hewlett-Packard Enterprise, and one that will comprise HP’s market-leading personal systems and printing businesses, which will do business as HP Inc. and retain the current logo. Immediately following the transaction, which is expected to be completed by the end of fiscal 2015, HP shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc. The transaction is intended to be tax-free to HP’s shareholders for federal income tax purposes.
Today’s announcement comes as HP approaches the fourth year of its five-year turnaround plan. Over this time, the company has executed successfully against its turnaround objectives, keeping customers and partners at the forefront. HP has reignited its innovation pipeline, strengthened its go-to-market capabilities, rebuilt its balance sheet, and inspired its workforce and management teams. The company is now positioned to accelerate performance, drive sustained growth and demonstrate clear industry leadership in key areas.