Selling HP's PC business may not be easy


— 4:03 PM on August 19, 2011

Now that the whole world knows HP intends to rid itself of its PC business, the small matter of actually finding a buyer for that business unit may prove to be rather difficult, according to a story at ComputerWorld. The major hurdles include the fact that HP's Personal Systems Group (PSG) is large enough to be rather valuable—with revenues of $9.5 billion in Q3 2011—yet its margins, and thus profits, are small.

Against that backdrop, finding an appropriate buyer for PSG could be tough. ComputerWorld spoke to analysts who ruled out some obvious potential candidates for sound reasons: "Dell will likely have no interest as it is moving away from the consumer PC market to focus on enterprises, and Acer is cash-strapped and losing market share." Lenovo is cited as a possible candidate, and it has done this dance before with IBM. Still, the list of potential buyers isn't a long one.

Another possibility that could be simpler is a spin-off, in which PSG is rolled into a separate company and left to fend for itself. That route may be cleaner and easier, although HP wouldn't get the immediate cash that it would from selling PSG.

   
Register
Tip: You can use the A/Z keys to walk threads.
View options

This discussion is now closed.