Tech companies are in a splitting up mood as Hewlett-Packard’s break up shows. First posted on Bizmology.
Hewlett-Packard became the latest company to make plans to split into two. CEO Meg Whitman announced Monday that Hewlett-Packard Enterprise will sell enterprise software and services while HP Inc.’s business will be in personal computers and printers. The move is to make both companies (which will each have revenue of more than $55 billion) more focused and nimble in the competitive technology landscape.
The HP announcement comes just a week after eBay announced it would spin off PayPal into a separate business. A host of other companies, mostly outside the tech industry, have recently split or plan to, including Time Warner, News Corp., and Gannett. Although they haven’t split, many of HP’s competitors are taking similarly dramatic steps for similar reasons.
IBM has sold its PC and server businesses to Lenovo, with the server deal just being finalized last week. Dell, which has made several acquisitions in recent years, went private to sort out its strategy for navigating the changing computer environment. And as they struggle with growth, both Microsoft and Oracle have new CEOs to lead the charge (Satya Nadella took the helm at Microsoft early this year and co-presidents Mark Hurd and Safra Catz took over from Oracle’s Larry Ellison — who had served as CEO for 37 years — just last month).
– See more at: HP breakup