IT & Network Infrastructure : HP's Big Corporate Shake-Up: Who Wins, Who Loses
Winner: Autonomy and Shareholders
The UK-based company had been seeking a suitable buyer for several months, we're told, and came up with the best one an eligible IT company could get. The principals and stockholders are over the moon about the $11 billion sale. The stock was selling for $2,490 per share on Aug. 23up from $1,500 on Aug. 19. Talk about a jump.
Aug. 18 was the day Hewlett-Packard announced the most wide-ranging corporate restructuring in its history. It was the day the company disclosed that it: a) decided to shutter its highly touted webOS hardware division (tablets and smartphones); b) is dumping its personal computer division; and c) is acquiring a U.K.-based enterprise software company, Autonomy, to help lead it back to the Promised Land of cloud computing and Web services. HP is showing a lot of faith in 15-year-old Autonomy, the second-largest pure software company ($7 billion market cap) in Europe behind Germany's SAP. Its customers include T-Mobile, Exxon, Toyota, Nestle, McGraw-Hill, General Motors, Federal Express, Sony, Kaiser Permanente, the U.S. Department of Defense and a number of other Fortune 1000 enterprises.??í This is a historic change for 72-year-old HP, one that founders Bill Hewlett and David Packard might not have signed off on if they were alive to have a say about it. But these changes are in the works and it remains to be seen who will come out on topand who will not. There are a number of winners and losers in this deal, and eWEEK outlines some of the key ones here.