Silicon
Valley personal computer and printer maker Hewlett-Packard Co. is set to split
into two companies, according to a newspaper report. The business will look to
focus more on corporate services.
Deutsche Welle, 6 Oct 2014
The Wall
Street Journal reported on its website Sunday that HP was poised for the split,
citing people familiar with the matter.
The move,
which could be announced as early as Monday, would see HP create one company
that sells computers and printers, and second that focuses on technology
services, including data storage, servers and software.
HP was
founded by Bill Hewlett and Dave Packard in Palo Alto, California in 1939. It
went on to have a pivotal role in the rise of the Silicon Valley tech industry
and the personal computer revolution.
The company
has struggled of late, laying off tens of thousands of employees over the past
few years as it struggles with dwindling sales and a rise in mobile computing.
HP still
retains 300,000 employees, however, and is on track to earn $112 billion (90
billion euros) in revenue this fiscal year.
A number of
major companies have spun off operations into separate companies in recent
years, in the face of pressure from shareholders. Investors often reward
technology companies for doing so, in the belief that more focused companies
perform better.
Last week
online auction company eBay announced it would spin off its mobile payment
service PayPal. The move prompted a more than 7 percent rise in share prices on
the day when news of the move broke.
dr/av (AP, Reuters, AFP)
Related Articles:
No comments:
Post a Comment