HP Reverses Course, Will Keep PC Unit

hp logoHP, the world's largest PC manufacturer, has announced that it has reversed course and will not sell off its PC unit. The company had announced in August that it would spin off the business, but with CEO Leo Apotheker having been ousted and replaced by former eBay CEO Meg Whitman, HP has reevaluated its plans.

“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.

Top Rated Comments

Arcus Avatar
163 months ago
They did a Netflix.
Score: 37 Votes (Like | Disagree)
JBytes Avatar
163 months ago
I suppose we should expect the rebirth of the TouchPad next?
Score: 25 Votes (Like | Disagree)
8CoreWhore Avatar
163 months ago
Executives get more money to fail than workers get their whole lives.

Their new PC line will be called Quickster.
Score: 22 Votes (Like | Disagree)
Xian Zhu Xuande Avatar
163 months ago
Translation: "Thank God we got rid of that moron."
Score: 21 Votes (Like | Disagree)
rdowns Avatar
163 months ago
Maybe Meg will do alright after all.

I'm pleased with this.


She was part of the board that OK'd this originally. I give her credit for nothing.
Score: 16 Votes (Like | Disagree)
neiltc13 Avatar
163 months ago
I'm surprised with how much Apotheker got away with.

$13,200,000 (http://www.computerweekly.com/Articles/2011/09/30/248032/Leo-Apotheker-pockets-13.2m-from-HP-despite-plummeting-share.htm).
Score: 15 Votes (Like | Disagree)

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