After an “evaluation of strategic alternatives”, HP has decided not to either sell or spin off the Personal Systems Group (PSG). Given the plummet of the share price on the original review announcement and the subsequent departure of the then-CEO Leo Apotheker, this is not entirely unsurprising news.
The new CEO and HP President, Meg Whitman, said, “HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees. HP is committed to PSG, and together we are stronger.”
Apparently the in-depth strategic review revealed that the PSG was tightly integrated throughout HP’s operations and brought significant value to HP’s brand and portfolio. The cost of extracting PSG from HP negated any possible benefits from the split of the organisation. There’s a surprise.
No news on whether WebOS will get a reprieve but more may be revealed at a this afternoon’s press call (5pm Eastern)
Update: based on the press call, it’s “wait and see” for a few months with regard to WebOS. There’s more over at PreCentral.
2 thoughts on “HP Changes Its Mind”
Will be interesting to see where the WebOS goes
Comments are closed.