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HP Reverses Course, Will Keep PC Unit
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG [Personal Systems Group]. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said Meg Whitman, HP president and chief executive officer. “HP is committed to PSG, and together we are stronger.”According to The Wall Street Journal, HP's initial estimate of a $300-400 million cost to spin off the PC unit proved to be far too low, with further studies pegging the cost at closer to $1.5 billion. Combined with a strategic review that determined the level of integration across HP's business was deep enough that contributions from the PC unit would be missed, HP ultimately decided to keep the business in-house.