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Tuesday, October 7, 2014

Hewlett-Packard Separates

       Palo Alto - a recent wave of break-ups and spin-offs at technology companies and in the broader corporate world is fueled by the idea that companies with a narrower focus perform better.  In many cases the concept is well-received by shareholders who feel that getting good at one thing before diversifying, makes sense.  In 2012, under current Hewlett-Packard Chief Executive Meg Whitman, Hewlett-Packard reorganized itself to combine the PC business with its more profitable printer operation, helping pare the way for the current plan to separate.
     Now, after two years Hewlett-Packard Co. says it plans to separate its personal-computer and printer businesses from its corporate hardware and services operations, the latest attempt by the technology company to improve itself.  If the separation goes as planned it would give rise to two publicly traded companies.  The company will make the split through a tax-free distribution of shares to stockholders by the end of fiscal 2015, if the deal goes as planned.  The planned break-up is one that Palo Alto, California - based Hewlett-Packard and its investors have long contemplated.  Hewlett-Packard came close to separating off its PC operation in 2011.  See also,    
    www8.hp.com/us/en/home.html.

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