IT & Network Infrastructure : HP's Big Corporate Shake-Up: Who Wins, Who Loses

By Chris Preimesberger  |  Posted 2011-08-24 Print this article Print
Winner: Autonomy and Shareholders

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. 23—up 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 top—and who will not. There are a number of winners and losers in this deal, and eWEEK outlines some of the key ones here.
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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