HP plans in Split: PC and printer business or own

Beijing time October 6 morning news, according to the Wall Street Journal reported that the company plans to split into two companies, one main PC and printer business, another main enterprise hardware and services business. This is also the latest move by the tech giant to reverse its fate. People close to the situation said HP planned to announce the plan on Monday. The company is expected to complete the break-up next year through a tax-free allotment to shareholders. If everything goes according to plan, two companies with annual revenues of more than 50 billion dollars will be born. Many of the big companies, including ebay, have recently opted for a break-up, partly because the independent operation is more beneficial to the business of different growth prospects. People close to the situation said HP's revenues had fallen sharply, with the company's corporate hardware and services sector having a longer-term outlook over printers and PCs. Lalf Whitworth Ralph Whitworth, former HP chairman, said in Sunday: "This will be a wise move in HP's revival." And will release the immense value of being repressed. As of Saturday, the relational investors Investment company, which was founded by Wye House, holds about 1.5% of HP shares. The news also sparked speculation in the market, with many suspecting that HP could launch more acquisitions after the break-up. The Wall Street Journal recently reported that HP had merged with 28.64,0.14,0.49%, the data-storage device maker, which would create an industry magnate worth about $130 billion trillion. Although the talks have recently ended, industry observers believe the split could pave the way for HP's corporate hardware and services business, culminating in a successful merger with EMC. HP and its investors have been planning the break-up long ago. Hewlett-Packard narrowly split its PC business after announcing a takeover of Autonomy, the UK software maker, in 2011. After the acquisition, Hewlett-Packard said it would consider splitting the PC business, but because of the autonomy takeover case sparked strong shareholder dissatisfaction and led to the resignation of Apotheker, the CEO of Li Ai (Leo), HP decided to put the program in abeyance. HP spun off Agilent in 1999, a company specializing in the production of electronic test equipment and other hardware products. Agilent later announced its own spin-off plan. In 2012, under the leadership of Hewlett-Packard CEO Whitman Meg Whitman, the company laid the groundwork for the current spin-off plan by reorganizing its PC business with a more lucrative printer business. People familiar with the matter said the spin-off of the PC and printer business would take the name of Hewlett-Packard Inc., chaired by Whitman, and Diang Wisler Dion Weisler, head of HP's PC and printer business, as CEO of the company. The enterprise hardware and service business after the split is called HP Enterprise (has Enterprise), the current chief independent director of Hewlett-Packard Patricia Russell (Patricia Russo) as chairman of the company, Whitman as CEO. In the 2013 fiscal year ended last October, HP's print and personal Systems Group achieved revenue of $55.9 billion, accounting for about half of HP's total revenue. The group's revenues fell 7.1% per cent, higher than the entire HP 6.7% drop, as a result of fierce competition. Hewlett-Packard's position as the world's largest PC maker has been taken away by Lenovo last year, according to IDC, the US market research firm. HP was born 75 years ago in a garage in Paroorto, California. Whitman has been restructuring the company for years to prevent a continued decline in revenues. In addition to PC and printer business, HP has profited by selling hardware such as servers and data storage systems to businesses, as well as software and financial services. HP's share price has risen sharply since the start of last year, but is still well below its recent highs – a far cry from the dotcom bubble of the 1990 era. Hewlett-Packard's shares rose 2% in Friday, at $35.20 and a market value of $66 billion trillion. HP has laid off tens of thousands of people and cut other costs in response to falling revenues and falling share prices. The technology industry has recently set off a wave of spin-off, as the industry is widely expected to narrow the scope of concern to the development of enterprises. Many of the similar measures have been highly recognized by shareholders, and some even by shareholders. In Tuesday, Whitman once served as CEO of the US online auction pioneer ebay announced the split PayPal payment business. The move was sought after by ebay shareholders, pushing the stock up about 7.5% per cent on the day. (PEI)