Carly shown the door

Filed under: — menk @ 11:30 am

The HP board has finally seen (with the help of Fortune Magazine) that the HP Compaq merger was foolish and ego driven. The Board has pushed out Carly and the market has responded with HP stock up 10% at the open.

The merger of HP and Compaq was doomed from the start and has cost the HP stock holders dearly. The bitter proxy battle that ensued three years ago pitted Walter Hewlett (son of the HP founder - Bill Hewlett) against Carly Fiorina and some other short sighted members of the HP board.

For the most part the flawed argument about the merger that Carly was making is that if you take two failing PC vendors and combine them the result will be a competitive PC vendor. This has proven to be a losing strategy Fortune Magazine published a detailed article in the February issue that peels back the onion on HP financials and the merger to show without a doubt was a dismal failure and that as a result HP is flailing as a company.

I would hope that HP will consider spinning off the Printer and Imaging business and letting the enterprise systems, outsourcing and PC businesses succeed or fail on their own.

Powered by WordPress