Hewlett-Packard moves forward by the plan that Hp should cope up with the tech market and for this reason Hewlett-Packard Files to Split in Two this Wednesday. The company decides to be in two parts one that will deal with software and other with machinery.
Hp decides to divide, This Wednesday Hewlett-Packard Files to Split in Two
The two new companies are to be HP Inc. and Hewlett Packard Enterprises. Hp filed their paper work with Securities Exchange Commission to consider taking a higher step for technological development.
The breakup would create one company that sells HP’s computers and printers and a second that focuses on technology services, including data storage, servers and software
On the basis of past performances the company split into two from which one is to be called as Hewlett Packard Enterprise Co. The document which was filed had a content saying that the company was having total assets of $65 billion in the fiscal year ended in October, however the revenues earned by them were of $55 billion.On the other hand the other company, HP Inc., which is considered as a parent company for Hp isn’t required to file a similar disclosure document.They also say that they plan to sell PCs and printers, before the November separation.
The Hewlett-Packard CEO Meg Whitman’s decision to divide the company was a struggling and difficult decision but it will help them to keep pace with swift moving technology. The 76 year old company has worked alot for their declinig sales to make a comeback in market but all in vain, this step will definitely lead them to have their market back.The big sized firm now will be more focused on defined criteria.
Miss Whitman last week in an interview said that:
We needed to be smaller, more nimble, we needed to be more focused, And we needed to have a capital structure for each company that would allow them to pursue their objectives.
Moreover she said about the separation that:
She is more convinced than ever that the separation will create two compelling companies well positioned to win in the marketplace and to drive value for our stockholders.