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HP may begin selling off business units

Posted: , by Maxwell R.

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HP may begin selling off business units
HP is ringing in the New Year with plans to evaluate and dispose of businesses that are not meeting targets, the personal computer unit is safe from any potential divestiture however (that includes the printer unit which CEO Meg Whitman combined with the PC unit).

Unfortunately, some of the units that HP may be interested in selling may be a tad radioactive. A couple of examples that come to mind are the company’s acquisitions of EDS and Autonomy. The latter has garnered more of the news though. Autonomy was acquired by HP in 2011 which resulted in an $8.8 billion writedown in 2012, the transaction now being investigated by the Department of Justice over cooked books by Autonomy. That deal was designed by then-CEO Leo Apotheker before he was fired in late 2011, and the deal closed barely a month after Meg Whitman took the helm.

In a disclosure filed with the Securities and Exchange Commission, HP acknowledged that it might have trouble selling some businesses, that it may “dispose of a business at a price or on terms that are less desirable than we had anticipated.” Moreover, HP expects such divestitures may have a larger impact on future growth than initially projected.

Consider this the first move in what HP said would be a difficult year ahead. It also sets the environment that we knew about in terms of HP’s plans to compete in the mobile phone segment – that will happen in 2014...we hope.

sources: Bloomberg via BGR

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posted on 02 Jan 2013, 00:04

1. MeoCao (unregistered)

It's sad to see HP in this situation, this is the result of failure to see the market trend and lack of focus.

I read a great news about HP that the company is beginning to embrace Linux and lessen reliance on MS which has turned into HP competitor.

posted on 02 Jan 2013, 01:42

2. eharris560 (Posts: 78; Member since: 28 Dec 2012)

MS is not going to be a competitor to any hardware maker. Why do people continue to suggest this. MS makes software. Yes at times they do make hardware, but only to push their software. Ex the Surface was made because MS felt that OEMs was not pushing tablet design, and wanted nice hardware to showcase the software. If MS becomes a competitor to hardware is will be out of necessity.

posted on 02 Jan 2013, 21:46

3. corporateJP (Posts: 2458; Member since: 28 Nov 2009)

Couldn't find a nicer company to see fail.

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