Hewlett-Packard Company (NYSE:HPQ) All Set To Create Two New Global 50 Companies
The plans and reparations to split Hewlett-Packard Company (NYSE:HPQ) into two standalone companies are on course. The company’s CEO, Meg Whitman, recently revealed that the process of breaking up HPQ has been fairly smooth and she is confident that the outcome will be exciting. As HPQ breaks up itself, it is not just about creating two new companies from one, but also creating two new top 50 global companies.
In the next few months, Hewlett-Packard Company (NYSE:HPQ) will cease to exist as a single entity as it has been over the past years. Instead, the company will spin off its enterprise-focused unit into HP Enterprise. The remaining unit will be called HP Inc, and will mainly be focused on the printer and PC business.
According to HPQ’s CEO, Whitman, there is more than just creating two separate companies in the planned breakup. She believes that the split will give rise to two new global corporate giants that will be among the Global 50 companies. That explains why Whitman maintains that the breakup of HPQ is the right move.
It is expected that the two standalone HPQ companies will have annual revenues of more than $55 billion.
Operating separately since August
Ahead of the formal breakup, Whitman has revealed that HP Inc and HP Enterprise have been operating as separate entities since August 1. The official split of the company is expected on November 1.
The transition to create two separate companies out of the current Hewlett-Packard Company (NYSE:HPQ) organization has been flowing flawlessly, Whitman pointed out.
Hewlett-Packard Company (NYSE:HPQ) will have roadshows to enlighten investors about the two new standalone companies. The idea is to make it easy for investors to decide which of the two companies they would want to invest in, or even if they would want to invest in both.
The other thing that remains to be done before the Hewlett-Packard Company (NYSE:HPQ) divisions formally go separate ways is debt transfer. Because the debt in the company currently is from the PC and printer unit, debt will be moved from one company to the other to ensure a smooth life post breakup.
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