One of our favorite acronyms is ditching another one: Hewlett-Packard wants to spin off its personal computers division in a dramatic move. Whatever the means—spin-off, direct sale, or “other transaction”—HP is done with this low-profit market. Yes, that announcement comes from the current leader in worldwide PC sales. Speaking of the commodity PC business during today’s earnings call, HP CEO Leo Apotheker said “continuing to execute in this market is no longer in the interest of HP and its shareholders.”
And that’s not all. The company is also buying British data analysis company Autonomy in a $10.2 billion blockbuster deal and effectively shutting down what’s left of Palm. You’d think that the third-quarter report that’s due after the closing bell would be enough excitement for one day, but HP didn’t think so.
There’s a common thread running through all of these changes, and it all starts at the top.