Bloomberg: HP set to spin off PC division

Bloomberg is reporting that HP intends to spin off its PC division. This, according to "people with direct knowledge of the matter," comes as HP negotiates to buy UK software developer Autonomy Corporation for $10 billion.

HP hasn’t made an official statement on the matter, so the unexpected news remains unconfirmed. Perhaps we shouldn’t be surprised, though.

Chief Executive Officer Leo Apotheker, who took the helm at Hewlett-Packard in November, has said he wants to expand in software and so-called cloud services, which help customers perform computing tasks over the Internet. Hewlett-Packard has been aiming to lessen its dependence on PCs, where growth has stalled as consumers flock to smartphones and tablet-style computers like those made by Apple Inc.

Of course, there’s a big difference between lessening dependence and completely spinning off HP’s PC division. Interestingly, there’s no mention of whether HP’s other businesses, such as its lucrative racket charging obscene prices for printer ink, will remain within the fold. Thanks to TR regular 5150 for the tip.

Comments closed
    • ronch
    • 8 years ago

    I never liked HP products. Not that I hate them, they just never were on top of my wish list.

    • Corrado
    • 8 years ago

    Ugh. This is like, the 5th or 6th software tool we use at work thats gotten bought by HP. EVERY SOFTWARE THEY TOUCH TURNS TO GARBAGE.

    Mercury SiteScope = trash now. Absolutely worthless. Slow, crashes, requires daily restarts that throw false alerts. They were so puzzled when we switched to a different monitoring application.

      • A_Pickle
      • 8 years ago

      [quote<]EVERY[b<]THING[/b<] THEY TOUCH TURNS TO GARBAGE. [/quote<] Fixed that for you.

        • no51
        • 8 years ago

        What about Compaq?

          • vipw
          • 8 years ago

          In that case they were too late.

    • 5150
    • 8 years ago

    It’s taken nearly 10 years but I finally got my name on the front page!

    In my opinion, this is probably a good idea. HP’s consumer level laptops have never impressed me, and besides indeego, I don’t know anybody that is gaga over their business line.

      • dpaus
      • 8 years ago

      So after 10 years of ‘First!” you can now say “Front!” ? 🙂

      I’m not so sure; I remember our Marketing profs telling us how marketshare control of a segment gave you so much power in other sectors (um, ‘ink’?) it was worth doing it at break-even, or even at a loss.

      [url=http://www.autonomy.com<]Autonomy Corporation[/url<] - from 0 to $10bn valuation in 14 years - not too shabby (pretty damn humbling, actually) {server is slow; I guess 5150 told all his billionaire friends, too} EDIT: the HP press release mentions a figure of $4bn - [i<]much[/i<] more reasonable. EDIT2: nope, [url=http://www.bloomberg.com/news/2011-08-18/hp-said-to-be-near-10-billion-autonomy-takeover-spinoff-of-pc-business.html?cmpid=yhoo<]Bloomberg reports[/url<] that the acquisition price is indeed $10.3bn - a 64% premium on their closing price. Somebody better damn well ask why Apothekar should be trusted spending 18% of HP's net profit to increase their revenues by 1.2% when he's screwed up virtually every other recent buy

      • BobbinThreadbare
      • 8 years ago

      Their business line is pretty nice, but from what I understand they won’t let just anyone buy one. Which seems counter productive to me.

        • 5150
        • 8 years ago

        If you want to buy one already made they are some-what competitve in price, but the minute you go CTO they get out the 40 pound box of rape.

        • Voldenuit
        • 8 years ago

        I’ve never had any problem ordering Elitebooks as a consumer. However, as 5150 says, their customization service is expensive and slow.

        lenovo’s Thinkpads, on the other hand, are tougher*, often cheaper and far easier to customize, so they’re usually my first port of call when I want a good laptop.

        * This has been my anecdotal experience, anyway.

      • Ronald
      • 8 years ago

      Here is HP’s official PR:

      [url<]http://www.hp.com/hpinfo/newsroom/press/2011/110818b.html[/url<] Expect to hear more later today during HP's Q3 earnings conference call: [url<]http://www.hp.com/hpinfo/newsroom/press/2011/110804a.html[/url<]

        • dpaus
        • 8 years ago

        They’re killing the TouchPad and pre3 too – 3rd para:

        [quote<]HP reported that it plans to announce that it will [b<]discontinue operations for webOS [i<]devices[/b<][/i<], specifically the TouchPad and webOS phones. HP will continue to explore options to optimize the value of webOS software going forward[/quote<] I'm curious to see what that second sentence means. I wonder if they're in discussions with RIM... EDIT: the more I think about it, the more this sounds like the flip side of Google's announcement. Google makes a mobile OS, but now bought a hardware unit and will be competing with the very firms that it licenses Android to (just imagine how other PC vendors would react if Microsoft bought Dell, for instance). Now HP is saying they'll get out of the business of manufacturing mobile devices, but will license the spiffy mobile OS it bought just last year for $1.2 bn. I wonder how tempted HTC and Samsung are...

          • LSDX
          • 8 years ago

          I could see them reselling some parts to Google, especially the whole Palm mobile devices patent folio. Or to Apple/Microsoft if they are ready to put more $ on the table.

          • Voldenuit
          • 8 years ago

          [quote<]Now HP is saying they'll get out of the business of manufacturing mobile devices, but will license the spiffy mobile OS it bought just last year for $1.2 bn. I wonder how tempted HTC and Samsung are...[/quote<] Maybe nokia will be interested. In the past year, they've released Symbian^3 and then meego phones (Europe and Asia only), and are now moving on to WP7. Surely a fourth OS will cure their indecision!

            • PeterD
            • 8 years ago

            And that after all that trouble to buy Compaq.
            Buying things, then trying to get rid off them…
            That company will get in trouble.

            • UberGerbil
            • 8 years ago

            Well, the Compaq purchase was a decade and several CEOs ago.

            HP has been having an identity crises for quite a while now. Top 5 PC vendor like Dell? Soup-to-nuts silicon-to-services provider like IBM? Integrated mobile ecosystem like Apple? Peripheral and component supplier like Canon / Samsung / etc? And all the while their hardware engineering chops seemed to wither while being burdened with unrelentingly broken and bloated software. It’s a shame really: despite a history of great products like the LaserJet they may be best remembered as a place that various tech pioneers worked at before leaving to actually pioneer something.

            • dpaus
            • 8 years ago

            [quote<]may be best remembered as a place that various tech pioneers worked at before leaving to actually pioneer something[/quote<] With all due respect (did you work there?), they had a long way to go before they could even hold a candle to Xerox on that front. Hell, I don't think they'd even caught up with Kodak.

            • UberGerbil
            • 8 years ago

            No, I never worked there, but you’d be amazed at the number of folks in the valley who have HP somewhere on their resume. It’s not just Wozniak.

            • dpaus
            • 8 years ago

            I think it’s the same as having Bell Canada on your resume in the technical services sector.

Pin It on Pinterest

Share This