Apparently two HPs are better than one, at least according to the company’s board. The company has announced plans to split HP into two separate publicly traded units: HP, Inc and Hewlett-Packard Enterprise. Let’s take a look at the two new companies and what it means for both the landscape and consumers.
The first of HP’s successor companies is Hewlett-Packard Enterprise. It’s a bit telling that their business-focused division was given top billing. Hewlett Packard Enterprise will be led by current HP CEO Meg Whitman. Cathie Lesjak, HP’s CFO will also be moving to the enterprise company. It will include the company’s server, storage, cloud services, networking, as well as its business services and software. The company also made a note in their release that Enterprise will not be as burdened by debt. That seems to imply that most of the debt is on the consumer side. This move is very similar to the one IBM made a decade ago offloading its PC division to Lenovo. It worked out well for big blue, but we’ll see what the future holds for HP Enterprise.
The second successor company is HP, Inc. This includes the company’s PC and printer division. Dion Weisler, who has been serving as its Executive Vice President of Printing and Personal Services will be the President and CEO of HP, Inc. Meg Whitman will also have a roll in this company as Chairman, but it’ll be a non-executive position. The company will be moving into the 3D printer market as well as undefined “new computer experiences”. While the more consumer-oriented division, HP Inc also gave a priority to business customers aiming to create solutions for a modern workforce.
The deal itself is scheduled to take until the end of 2015 to complete. It is intended to be tax-free for shareholders, but the company must receive approval from both its own board of directors and the U.S. Securities and Exchange Commission. Once the split happens, current shareholders will receive stock in both Hewlett Packard Enterprise and HP, Inc.