HP changes their mind, will keep PC unit

HP will keep PC unit, reverses course.

@anthony256
Published Thu, Oct 27 2011 7:10 PM CDT   |   Updated Tue, Nov 3 2020 12:30 PM CST

HP have just announced that they are 'reversing course' and will now not sell off their PC unit. HP announced in August that they would spin off the business, but with CEO Lep Apotheker now on the outside, and former eBay CEO Meg Whitman directing the HP ship, they've reevaluated their plans. Quoting Whitman here:

HP changes their mind, will keep PC unit | TweakTown.com

HP objectively evaluated the strategic, financial and operational impact of spinning off PSG [Personal Systems Group]. It's clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees. HP is committed to PSG, and together we are stronger.

According to The Wall Street Journal, HP's initial estimate of a $300-400 million cost to spin off the PC unit proved to be far too low, further studies actually put the cost closer to $1.5 billion. On top of that, a strategic review determined the level of integration across HP's business was deep enough that contributions from the PC unit would actually be missed. HP ultimately decided to keep the business in-house.

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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