Tag: split

HP split set for November 1

Posted on June 3, 2015 by - News

Whitman's-SamplerThe maker of expensive printer ink, HP will be splitting itself in two on November 1.

HP queen bee, Meg Whitman said that everything will be good to go for the separation of HP and Hewlett-Packard Enterprise would be effective on November 1.

Whitman made the announcement during the company’s technology event, HP Discover 2015, in Las Vegas.

The world’s No. 2 personal computer maker wants to split into two listed companies, separating its computer and printer businesses from its faster-growing corporate hardware and services operations.

Whitman believes that breaking HP into two companies, with about $57 billion in annual revenue each, will create two more nimble outfits which can respond to the constantly shifting technology marketplace.

Whitman will be left in charge of Hewlett-Packard Enterprise, which will include the $27 billion division that sells industrial-grade computing and networking gear and the $23 billion Enterprise Services business, which runs the tech and IT operations for other companies under contract.

Her slimmed-down company will walk away from the separation with the majority of the parent’s cash — about $13.3 billion — which will allow it to quickly pivot into deal-making mode. It’ll also allow both new companies to re-engage with Silicon Valley and the wider tech industry, she claims.

Samsung considers split

Posted on January 20, 2015 by - News

axeSamsung is considering a stock split in a bid to keep its investors happy as the outfit experiences sliding profits.

Samsung head of investor relations Robert Yi told reporters the company had been considering a stock split for some time but it was too early to make a decision. A split would make Samsung shares easier to buy and could attract more retail investors.

The world’s top smartphone maker has launched a $2 billion share buy-back program and promised to increase its 2014 year-end dividend by up to 50 percent in a bid to lift its share price and placate investors.

However, Samsung shares are well below last year’s peak of $1,380 mostly because of a string of quarterly profit declines. In fact, the only thing that stopped them sinking lower was the buyback and a planned dividend increase.

Apple saw its shares end up 37.7 percent last year, thanks in part to a seven-for-one split, so it might be another case where Samsung is emulating Jobs’ Mob.

 

HP faces problems in its two way split

Posted on October 9, 2014 by - News

Tenniel's illustration of Tweedledum and Tweedledee - Wikimedia CommonsThe decision by HP to split itself into two will have implications for its business in Europe.

That’s according to a number of analysts at the International Data Corporation (IDC).

Earlier this week HP said it would divide itself into HP Enterprise, focusing on the corporate market, and HP Inc, selling PCs and printers.  Both companies will generate revenues of around $57 billion each.

The changes in Europe will impact the two HPs in between six to 18 months and affect channel, volumes, and SME (small to medium enterprises) sectors.

Giorgi Nebuloni, manager of Datacentres at IDC said: “HP will have extra work to do to align its massive customer base between client/printing devices and low end server and storage to keep a coherent approach on discounting and pricing, especially for SME customers.”

Competitors Lenovo and Dell are likely to take advantage of the changes to drag smaller resellers and distributors away from HP products to their own. IDC thinks that in the mid term the split could end up being costly for HP and both HPs will need to keep their eyes peeled in brand new markets like 3D printing and Big Data analytics.

HP to cut itself in two

Posted on October 6, 2014 by - News

steven-ho-conan-watermelonUpdate: The news has now been confirmed. The Wall Street Journal has penned a piece which claims that the maker of expensive printer ink, HP, will announce that it will split into two today.

HP wants to separate its personal-computer and printer businesses from its corporate hardware and services operations.

The company is expected to make the split through a tax-free distribution of shares to stockholders next year.

If the split happens there would be two publicly traded companies, each with more than $50 billion in annual revenue.

Break-ups are very now amongs big companies.  eBay broke up lately, in part because of a belief that operations with different growth profiles are best managed as separate entities.

HP has suffered sharp sales declines and sees better long-term potential for its corporate hardware and services business than for its printer and PC unit so it is best that its hardware bits were lopped off, the Wall Street Journal claims.

Former chairman Ralph Whitworth said in a text message Sunday that it would be a brilliant move at just the right moment in the turnaround. It would liberate significant trapped value.”

The news has also resurrected the rumoured merger  of HP with data-storage equipment maker EMC. The talks recently ended, but the separation could pave the way for HP’s corporate hardware and services business to be combined with EMC.

It seems that the break-up has been on the cards for some time. HP mentioned the idea in 2011, when it announced the ill-fated acquisition of UK software company Autonomy.   At the time HP said then it was exploring a separation of its PC business, only to decide two months later to hold on to it.