HP to Split into two separate companies
HP has just announced that it would be splitting in two companies. Consumer focused PC and Printer company will be called HP Inc and Business-centered firm will be called as Hewlett-Packard Enterprise. HP expects the split before the end of 2015 fiscal year. Shareholders will own the shares in both companies.
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Meg Whitman is the President and CEO of HP. After the separation, Whitman will also serve on board of directors of Hewlett-Packard Enterprise. HP PC and printer chief Dion Weisler will serve as CEO of HP Inc. Pat Russo will lead as Chairman of Hewlett-Packard Enterprise.
Meg Whitman, Chairman, President and Chief Executive Officer of HP, said “The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders.”
HP, founded 75 years ago in a garage in Palo Alto, California. It has been facing a tough competition from Oracle and IBM for past few years. If we talk about the fiscal year 2013, HP’s total revenue was $112.3 billion. It was down 7% over the year. Enterprise revenue was 5% down. Printing and Personal Systems Group reported around $55.9 billion in revenue.