Hewlett-Packard Split - Hewlett-Packard is set to separate its software and corporate hardware business from its PC and printer division.
The company confirmed the news on Monday, adding that shareholders will be offered a tax-free stake in the two corporations, which will be known as Hewlett-Packard Enterprisse and HP Inc.
Hewlett-Packard has struggled to maintain its place in the fast evolving tech market over the past decade. In 2011, the company hired former ebay boss Ms. Meg Whitman to turn things around. Although Whitman managed to inspire a spike in the company's stock after salvaging Hewlett-Packard's PC division, the company has continued to perform weakly on the market.
Pundits say the split will enable Hewlett Packard's different divisions focus exclusively on their niches and position themselves in the market for better success. Ms. Whitman is expected to head Hewlett-Packard Enterprise - the software and hardware division - while another top executive Dion Weisler, will be the chief executive of HP Inc - the firm's printer and PC arm. Additionally, reports indicate that Ms. Whitman will serve on the board of HP Inc as chairperson, while Hewlett-Packard director Patricia Russo will be the chairman of Hewlett-Packard Enterprise.
Hewlett-Packard's PC and software divisions have always been at odds. Many executives of the company are reported to have been opposed to the decision to acquire Compaq Computers over a decade ago. Nonetheless, the head of the company then Carly Fiorina persisted in her decision and Hewlett Packard's PC division was formed. But the company's PC manufacturing unit continued to suffer under the leadership of former CEO Leo Apotheker.
Many critics were surprised when Ms. Whitman announced that the company's PC division will not be traded or spun off after she took over its reins. Pundits say it is most likely that those elements in the company's leadership who opposed its acquisition have never really accepted the idea of a Hewlett Packard PC division.
It remains to be seen if this split separation will bring this fading giant any success.
