HP will not spin off PC business

By on October 27, 2011 at 4:17 PM.

HP will not spin off PC business

After announcing this past August that it was considering a spin off of its PC business, HP confirmed on Thursday that it would keep its PC division. “HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said HP CEO Meg Whitman in a statement. “HP is committed to PSG, and together we are stronger.” The initial announcement, which was delivered alongside news that HP was discontinuing its two-moth-old TouchPad tablet and putting an end to its webOS hardware efforts, caused the company’s stock to tumble. Shares of HP are up 1% in after-hours trading following today’s announcement.

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HP's PC blunder will deteriorate HP brand value, analyst says

By on August 26, 2011 at 7:01 AM.

HP's PC blunder will deteriorate HP brand value, analyst says

It remains to be seen whether Hewlett-Packard’s upcoming overhaul will pay off in the long run, but one things seems clear: the manner in which HP revealed its plans was ill-conceived at best. HP’s announcements sent its stock tumbling, and analysts continue to lose faith in the company as unrest builds. In a note to investors on Thursday, RBC Capital Markets analyst Amit Daryanani cut his rating on HP stock to Sector Perform from Outperform, and he lowered his price target $5 to $30. Daryanani says HP’s announcement that it may spin off or sell its PC business “will accelerate the deterioration of HP’s brand and asset value,” and he thinks competitors will gain market share as a result. The analyst also believes HP’s decision to kill off its webOS device business could devalue the company’s PC division if it opts for a sale. He thinks a quick sale would be a good move for HP, though he writes that a cut in company forecast or increased buybacks are also options. More →

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Samsung could be preparing to purchase HP's PC business

By on August 23, 2011 at 12:40 PM.

Samsung could be preparing to purchase HP's PC business

While Michael Dell laughs it up on Twitter, a new report suggests that Samsung could be preparing to purchase Hewlett-Packard’s PC business, which the company revealed it may soon spin off. According to a new report from DigiTimes, Samsung may be eyeing a purchase of HP’s PC division, which would catapult the South Korea-based electronics giant past Dell and into the No. 1 PC vendor spot globally. The report states that Samsung is currently meeting with various leading manufacturers including Quanta and Compal to investigate outsourcing the production of its own netbook computers. Samsung has held similar meetings in the past to no avail, but anonymous source tell DigiTimes that the company may be particularly motivated this time around as it negotiates a deal to take over HP’s PC business and free up space to build the machines in its own factories. HP announced last week that it may spin off its PC business, but a sale is also possible according to this new report, which suggests that HP’s announcement was “testing the market’s reaction” as the company weighs its options. More →

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HP to announce spin-out of PC business during tonight's earnings call, report claims

By on August 18, 2011 at 12:30 PM.

HP to announce spin-out of PC business during tonight's earnings call, report claims

Hewlett-Packard will announce on Thursday evening that it is separating its PC division into a new, separate company, Bloomberg reported on Thursday. HP, the world’s No. 1 PC vendor, will announce that it has acquired software giant Autonomy Corp. and its PC hardware business will be spun out into its own business. According to Bloomberg, HP may have spent approximately $10 billion on Autonomy. HP is scheduled to report its second-quarter earnings following market close on Thursday. More →

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