Microsoft invests $300 million in Barnes & Noble

By on April 30, 2012 at 7:45 AM.

Microsoft invests $300 million in Barnes & Noble

Microsoft buys part of Barnes & Noble

Microsoft and Barnes & Noble on Monday announced the formation of a new partnership that will spin the bookseller’s digital Nook and College businesses into a new unnamed subsidiary. Microsoft’s investment of $300 million will bring it a 17% stake in the newly formed business, which is valued at $1.7 billion, and Barnes & Noble will own approximately 82.4% of the new company. “The formation of [this new subsidiary] and our relationship with Microsoft are important parts of our strategy to capitalize on the rapid growth of the NOOK business, and to solidify our position as a leader in the exploding market for digital content in the consumer and education segments,” said William Lynch, CEO of Barnes & Noble. “Microsoft’s investment in Newco, and our exciting collaboration to bring world-class digital reading technologies and content to the Windows platform and its hundreds of millions of users, will allow us to significantly expand the business.” Share of Barnes & Noble stock surged 80% in pre-market trading on the news. Barnes & Noble’s full press release follows below. More →

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HP to decide fate of PC division this month

By on October 5, 2011 at 9:05 AM.

HP to decide fate of PC division this month

HP’s newly appointed CEO Meg Whitman said the company will decide this month whether or not it is going to spin off its personal systems group (PSG). “We have to make a final decision about what to do with the PC division,” Whitman said. “It’s a decision I want to make much faster than my predecessor. I want to make it before the end of October.” HP’s former CEO Léo Apotheker originally said the verdict would be determined by 2012. Earlier this month, the company’s chairman Ray Lane explained he will “lobby” to keep HP’s personal systems group if his firm “can’t offer a better proposition to customers and investors.” Lane explained HP will likely still call the PSG group “HP PC Business” even if a spin off does occur, and he said the PC business may be more successful outside of its parent company because it is on a different track than HP’s enterprise business. More →

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HP may keep its PC business after all

By on September 20, 2011 at 3:40 PM.

HP may keep its PC business after all

In a recent interview with CRN, HP chairman Ray Lane outlined situations in which HP may hang on to its PC business. “If we don’t make that decision [to spin off], it’s because of two things: We can’t offer a better proposition to customers and investors,” Lane said. “If we can’t it stays inside HP.” If the company does decide to spin-off its personal systems group, Lane has suggested the company call it the “HP PC Business.” HP has the “largest and most profitable [PC] business in the world,” Lane explained during the InformationWeek 500 conference in California. “I am lobbying, and I don’t have to lobby very hard, to call it the HP PC Business. Call it HP. It will be a sister company,” Lane explained, pointing to HP’s spinoff of Agilent. “Agilent was a better business once spun off, because it was a very different business from what the rest of HP was doing.” Read on for more. More →

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Questions surrounding HP’s PC business deter enterprise customers

By on September 5, 2011 at 2:00 PM.

Questions surrounding HP’s PC business deter enterprise customers

HP’s customers are wary of purchasing new products from the company after its recent decision to kill off its webOS mobile operating system and possibly spin off its PC business. The chief information officer of Fluor Corp Ray Barnard told The Wall Street Journal his company typically spends $25 million per year upgrading its hardware and software. Barnard said that Fluor Corp was considering purchasing a number of HP computers capable of displaying 3D graphics, but has instead decided not to purchase from the company just yet. “I’ve put that all on hold” he told The Wall Street Journal. “It appears that they’re lost right now.” Read on for more. More →

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HP may resurrect TouchPad, head of PC business says

By on August 30, 2011 at 10:01 AM.

HP may resurrect TouchPad, head of PC business says

On August 18th, HP announced that it was killing off its webOS devices business and considering a possible spin-off of its personal systems group (PSG). The head of HP’s PC business, executive vice president Todd Bradley, discussed the TouchPad and his company’s PC business with Reuters, explaining that a spin-off could be the “best value” for HP’s investors instead of an outright sale to competitors such as Acer or Lenovo. “Regardless of what happens, we’re the largest PC company in the world,” Bradley explained. “We need everybody energized, and while this isn’t business as usual, we need people to go out and sell products every day,” he said, noting that HP will still remain a major customer to suppliers such as LG, Microsoft, Intel and Samsung. At least one analyst has remarked that a spin-off could kill HP’s brand value. Even more surprising, however is Bradley’s remarks about HP’s TouchPad, which the company recently discontinued and sold off in a fire sale. According to Reuters, Bradley said HP may resurrect the TouchPad and noted that the tablet computing segment is “relevant, absolutely.” While Bradley appears to be standing by HP, BGR exclusively reported on August 22nd that the executive is looking to leave the company for a CEO role at another firm. More →

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