HP May Split off PC and Printer Businesses

Hewlett-Packard is set to separate its personal computer and printer businesses from its corporate hardware and services operations, so as to improve its fortunes by breaking itself in two, The Wall Street Journal reported on October 5.

The computer and printer behemoth may unveil the move officially soon, said the statement. Also, the split may be achieved through a tax-free distribution of shares to stockholders next year. The division will give rise to two publicly traded companies, each with more than $50 billion in annual revenue.

The WSJ asserts that one person familiar with the plan said, “HP has suffered sharp sales declines and sees better long-term potential for its corporate hardware and services business than for its printer and PC unit.”

In addition, it notes that CEO Meg Whitman will become Chair of the PC and Printer business unit, and remain CEO of the Enterprise Business Unit as well. Senior Executive, Dion Weisler reportedly will become CEO of the PC business.

Ralph Whitworth, an HP investor said in a text message Sunday, “This would be a brilliant move at just the right moment in the turnaround. It would liberate significant trapped value.”