Sunday, January 21, 2018
HP to split into two publicly traded companies
HP to split into two publicly traded companies
The Hewlett Packard Company (NYSE: HPQ) announced this morning that it would split into 2 independent, publicly traded companies. Its PC and Printer business will become HP, Inc. while the business focused remainder will become Hewlett Packard Enterprise. HP has been struggling in the PC business for many years. In fact, in 2002, it bought the highly successful, Texas-based computer maker, Compaq. However, things did not get better.
In 2010, it acquired the once popular, but now struggling smartphone and handheld computer manufacturer, Palm, Inc.
Palm, Inc. had long been thrown under the bus by the highly popular smartphone platforms, iPhone and Android. And while HP even paid celebrities to endorse the new Palm smartphones and tablets, sales of the Palm devices were and continued to be so low that in 2011, HP shut down Palm.
That same year, HP, as many of you may recall, announced that it was looking to spin off its PC business (I think youll agree with me that this spoke volumes), but eventually cancelled plans to do so.
Now, theyre doing it again, but the difference is that theyre actually going to go through with it. The split is to be completed by October 2015, the end of HPs fiscal year.
