The rumors are true: HP has just announced that it plans to split itself up into two separate, and publicly traded, companies, with one focusing on its enterprise hardware, software and services, while the other will still offer its PC and printer products.
Today's press release says that the two companies should officially separate by the end of its fiscal 2015 year. When that happens, the corporate hardware and software business will be called Hewlett-Packard Enterprise, which will be lead by HP's current CEO Meg Whitman. The PC and printer business will form HP Inc. which will use the current HP logo and be led by Dion Weisler, who currently serves as HP's Executive Vice President of its Printing and Personal Systems business.
In its press release, HP states that it is still in the middle of a five year "turnaround" plan. It quotes Whitman as saying:
"The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders."
Back in 2011, HP announced it was considering a move to spin off its PC business into a separate company but that plan was quashed when Whitman took over as CEO. Do you think HP's plans to split in two is a good or bad idea?
Source: HP via MarketWired