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HP changes its mind, decides on no PSG spin-off

HP changes its mind, decides on no PSG spin-off
HP changes its mind, decides on no PSG spin-off
Through a press release, HP CEO Meg Whitman announced plans to keep the Personal Systems Group as-is

When HP announced its Q3 2011 financial results and the abandonment of the TouchPad, the corporation also mentioned that it may sell off its own Personal Systems Group (PSG) as well. Exactly why former HP CEO Leo Apotheker decided on the possible spinoff was never fully explained to the public, but could be seen as a major restructuring move for HP.

Now, in an about face, the newly appointed CEO of HP Meg Whitman announced Thursday that the company will be keeping its PC division.

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 Whitman in the press release. “HP is committed to PSG, and together we are stronger.

HP had been quite indecisive on the matter ever since the public announcement in August. The company was close to spinning off its PC division merely two weeks following the announcement, only to think twice about even spinning off at all two weeks later.

Currently, HP’s PSG is a large source of revenue for the company, totaling $40.7 billion in 2010, according to the press release. It still sits on top ahead of competitors such as Lenovo, Dell and Acer in worldwide PC shipment numbers.

We intend to make the leading PC business in the world even better,” said executive VP Todd Bradley. HP’s commitment to its consumer lineup of PCs will likely remain intact for the time being.

Source(s)

+ Show Press Release
> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2011 10 > HP changes its mind, decides on no PSG spin-off
Author: Allen Ngo, 2011-10-28 (Update: 2012-05-26)