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HP splits into two companies

Monday, October 06, 2014 - 01:21

The move comes as the legendary Silicon Valley pioneer struggles to adapt to a new era of mobile and cloud computing. Fred Katayama reports.

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Forget Meg Whitman's "better together" mantra. The CEO is splitting HP into two after all. She will head its faster growing corporate hardware and services operations, which will be known as Hewlett-Packard Enterprises. Its traditional PC and printer business will be named HP Inc. and led by HP executive vice president Dion Weisler. The move comes as the Silicon Valley pioneer struggles to adapt to a new era of mobile and cloud computing. Analysts applauded the move. Cantor Fitzgerald analyst Brian White said, "Given the challenges in managing a company the size of HP, the negative, long-term secular trends in the PC market that discourage investor attention, and the need for HP to focus more on the cloud, we believe a separation into two companies makes sense." Breaking up is the latest trend in tech, and the move comes just one week after eBay did ditto. HP had been considering a split or spinoff for years. But it backed off each time and even reportedly considered merging with data-storage gear maker EMC. Even with the split, some analysts don't think EMC shareholders would want HP's PC and printer operations. HP shareholders get stakes in both businesses. Its stock shot up in early trading, adding to its 25 percent gain this year.

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HP splits into two companies

Monday, October 06, 2014 - 01:21