“Hewlett-Packard Co. plans to separate its personal-computer and printer businesses from its corporate hardware and services operations, the latest attempt by the technology company to improve its fortunes by breaking itself in two,” Joann S. Lublin, Dana Mattioli and Dana Cimilluca report for The Wall Street Journal. “”
“The company intends to announce the move on Monday, people familiar with the plan said. It is expected to make the split through a tax-free distribution of shares to stockholders next year, said one of the people,” Lublin, Mattioli and Cimilluca report. “If the division goes off as planned, it would give rise to two publicly traded companies, each with more than $50 billion in annual revenue.”
“H-P, which has suffered sharp sales declines, sees better long-term potential for its corporate hardware and services business than for its printer and PC unit, said one person familiar with the plan,” Lublin, Mattioli and Cimilluca report. “The Journal recently reported that for much of the past year, H-P held talks to merge with data-storage equipment maker EMC Corp., a deal that would have created an industry giant with a market value of roughly $130 billion. Although the talks recently ended, the separation could pave the way for H-P’s corporate hardware and services business to ultimately be combined with EMC, industry observers said.”
Read more in the full article here.
MacDailyNews Take:
When we were an agrarian nation, all cars were trucks. But as people moved more towards urban centers, people started to get into cars. I think PCs are going to be like trucks. Fewer people will need them. And this transformation is going to make some people uneasy… because the personal computer has taken us a long way… But it changes. Vested interests are going to change. And, I think we’ve embarked on that change… We like to talk about the post-PC era, but when it really starts to happen, it’s uncomfortable. – Steve Jobs, June 1, 2010
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