What you need to know
- Xerox is considering a takeover of HP according to a new report.
- HP is currently three times the size of Xerox.
- Xerox shares are up 84 percent this year.
Xerox Holding Corp. might perform a takeover of HP Inc. according to a report from the Wall Street Journal. According to the Wall Street Journal, the board of Xerox discussed a possible takeover of HP on Tuesday. HP is currently three times the size of Xerox, and there's no guarantee that the potential takeover happens, but if it did, it would bring together two of the world's largest and most recognized printer manufacturers.
Xerox recently made a deal to sell stakes in Fujifilm Holdings Corp.. The company also has an informal funding commitment from a major bank according to people in contact with the Wall Street Journal. Xerox shares are up 84 percent this year, and its stock value rose five percent when the news broke about the Fujifilm deal.
HP's shares are down 10 percent this year, but the company reported a revenue of more than $58 billion in the fiscal year ending in October 2018. In comparison, Xerox has an annual revenue of $10 billion, largely from renting and maintaining business machines, according to the Wall Street Journal.
A takeover of HP by Xerox would bring together two of the most recognized names in the printing industry. HP primarily sells consumer devices, while Xerox has a strong foothold in the corporate space. A combination of these two companies would cover a wide range of customers and environments.
Sean Endicott is the news writer for Windows Central. If it runs Windows, is made by Microsoft, or has anything to do with either, he's on it. Sean's been with Windows Central since 2017 and is also our resident app expert. If you have a news tip or an app to review, hit him up at firstname.lastname@example.org.
So after that, I can say I have a xerox laptop. LOL. 😁
The inventor of the mouse takes over the leading mouse maker.
I wonder if Xerox is looking to buy HP's printer business and not HP itself. HP would likely like to unload the now declining revenue business and Xerox would likely love to have a turnkey consumer market. I also just can't see how Xerox can afford to buy a company that much larger than itself.
Good question - HPE(nterprise) and HP are separate corporate entities really having nothing to do each other. The printer business - even what they label "Enterprise", is contained as a division under HP, along with other divisions for personal computing and such. So yes, the printer lines and the printer services divisions could be split off from the other hardware, if desired. Or the whole thing could go. I'm not sure how the PC hardware portions perform; they can sell into enterprise based on name; but I know they don't compare favorably on price to Dell or Lenovo. And in my experience are fairly heavy on custom drivers that increase support complexity. HPE carries the servers, switches, storage, and support for the infrastructure of networks; and no printers.
So if Xerox is 3 times smaller, how can it take over HP?
With a bank providing financing. Apparently they have a financing letter from a major bank.
If Xerox do end up taking over HP's consumer operations, and if history is anything to go by (here's looking at you, Xerox Alto), will that mean the end of innovation from HP like the Elite x3?
they don't even make the x3 anymore, so..
The real reason is that Xerox wants to claim that the large "X" in the design of the Omen laptops are better suited to stand for Xerox than HP.
What if the reverse were to happen?
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