HP and then ask the spin-off plan: will the PC business and enterprise IT business spin-off for both companies

guide language: the tech blog Re/code according to over the weekend, weekend media reports, according to the HP will announce a spin-off plan, will the PC business and enterprise IT business spin-off for both companies. The plan a plan of HP like 3 years ago, at the same time also will bring a series of questions to the company’s prospects.

the following for the full article:

computer giant hewlett-packard will split. As business operations of landslide, HP CEO Meg Whitman (Meg Whitman) in promoting the company on the road to recovery seems to have no other choice.

HP will be announced on Monday that the earliest a split decision. In the past few months, HP has been studying sell some business department, including PC and enterprise services business. However, this did not get any results in the end. The personage inside course of study thinks, through spin-offs, HP’s two big business can use more simple financial statements to sell or buy. The financial statements of the sources, complicated affected HP previously acquired EMC .

Whitman as HP’s CEO has entered the third year. Whitman had proposed a five year plan, goal is to make HP’s revenue has resumed growth. However, the HP is split in two. Sources said that a company will contain the PCS and printers, while another company will include enterprise computing and IT services business. HP is likely to be held in SAN jose, California on Wednesday, an analyst at the meeting, detailed introduction to spin off the plan.

HP spokeswoman declined to comment on the news. On Sunday, the Wall Street journal first reported the news.

, according to sources in the future, will become the enterprise IT services company CEO Whitman, being both PCS and printers, President of the company. HP printing and PC group head of dean’s le (Dion Weisler) would be the company CEO, and HP’s director Patricia (Patricia Russo) will become chairman of another company.

for HP’s current shareholders, after the break-up, HP will be allocated shares.

the lack of buyers

HP had earlier attempts of the so-called “asset optimization”. Morgan Stanley has dominated the HP of the project, to assist the company looking for a potential acquirer non-core business. HP’s current strategy is geared to the needs of the company sales of computer hardware, software and services.

contacted lenovo and dell, HP hopes for $32 billion (2013) to sell the PC business. However, the two deals are failed. In addition, HP also contacted the Infosys and Wipro, two Indian company hope sold at a price of $28 billion IT service business, namely enterprise service department. However, HP was turned down again. And news that HP had contacted IBM, trying to sell for $1.2 billion commercial key server business, but also failed to succeed.

it is not clear, HP and how those outside the company’s progress, and whether these negotiations has entered the phase of the formal.

HP also explores the recent merger with EMC data storage company strategy, this deal will create a market capitalisation of $130 billion, science and technology giants. About the proposed takeover, HP’s main interest is in EMC holdings of VMware cloud computing software company.

however, this proposed takeover also to failure, EMC offer price is higher than that of HP is willing to give. And sources, the another cause of the failure of the negotiations is that HP and EMC that constantly landslide of the PC and printer department will become a drag on the combined company. HP the split will create conditions for HP and EMC restart merger talks, HP spin-off of enterprise service company will be a merger with EMC.

apprehension of

a spin-off initiatives in 2011 former HP CEO Leo Apotheker (Leo Apotheker) put forward a strategic plan. In 2011 September as HP’s CEO, Whitman does not continue to the plan.

he had earlier is the commercial software giant SAP joint chief executives. He tried to divest HP’s PC business, and HP’s transformation into a more focused on software company. The key to this process is HP for about $10 billion to buy British software company Autonomy. HP then, however, claim that the company paid about $5 billion more for the acquisition. The HP board so sacked Leo apotheker, and hired Whitman as chief executive.

HP spin-off will bring many problems. How much cash for new PC company? “Does this mean that, HP’s PC business will need to directly face the apple , dell and lenovo?” Research firm Moor Insights and Strategy Patrick Moore, head of the head (Patrick Moorhead) said, “apple has advantage in the PC market, and all other vendors in the competition for the rest of the market space, this is very low margin business.”

Moore Hyde also points to another important question: after the break-up of the two companies lose scale advantage will be how to deal with problems. Whitman veto Mr Apotheker spin-off proposal because, she thought, HP’s scale advantage enables the company to better with Intel and Seagate component providers such as negotiations. “Relative to HP as a whole, two smaller company bargaining power is weak.”

as a leader in the global PC market once, in 2002 after a merger with compaq, HP is now in the landslide, the global PC market share has been think over. (d)

source: sina science and technology

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