December 7, 2012 – Hewlett-Packard’s value has plunged to less than the $31 billion it spent during a five-year takeover binge, the strongest evidence yet that investors would be better served by disassembling the maker of consumer laptops, printers and corporate servers.
Deals for Autonomy Corp., Electronic Data Systems Corp., Palm Inc. and others built on the $17.6 billion purchase of Compaq Computer Corp. a decade ago, when HP doubled down on personal computers. With the company failing to capitalize on a boom in demand for smartphones, tablets and cloud computing, fiscal 2012 sales fell, and analysts project declines for at least three more years, according to data compiled by Bloomberg. In the latest setback, HP said it overpaid for Autonomy because of fraud, boosting last year’s deal-related writedowns to $18 billion.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access