Hewlett-Packard reportedly set to split into two companies
October 6, 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)