Hewlett Packard dropped a bombshell Thursday. The globe's largest PC maker is making headlines on a day where it's difficult to take anyone's eyes off of another major downward push for US equities and stocks around the world. Nonetheless, HP is shaking things up by announcing plans to "spin off its PC business."
As it turns out, HP is effectively dumping its newly acquired webOS smartphone and tablet business. Why? HP is shifting its focus to software and related services. According to CNBC, Hewlett-Packard confirmed that it is in talks to buy British software company Autonomy for $10 billion.
According to the WSJ:
H-Pís tablet is the TouchPad, an iPad rival that went on sale in July starting at $499. Earlier this month, HP cut its price 20 percent. HP got webOS when it acquired Palm Inc. in April 2010 for $1.2 billion. H-P may license the webOS software to others.
HP says it will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction.
HP today also announced preliminary results for the third fiscal quarter 2011, with revenue of $31.2 billion compared with $30.7 billion one year ago.
Sources: HP, WSJ, Bloomberg, CNBC