WSJ claims HP is very close to announcing a split that would break the company in two parts: a consumer division that incorporates the company's printer operation and a unit that focuses on corporate hardware and service business. If the rumor is correct, this would result in two publicly traded companies each with over $50 billion in yearly revenue.
The company intends to announce the move on Monday, people familiar with the plan said. It is expected to make the split through a tax-free distribution of shares to stockholders next year, said one of the people.
If the division goes off as planned, it would give rise to two publicly traded companies, each with more than $50 billion in annual revenue.
A number of big companies, including eBay Inc. in tech, have chosen to break up lately, in part because of a belief that operations with different growth profiles are best managed as separate entities. H-P, which has suffered sharp sales declines, sees better long-term potential for its corporate hardware and services business than for its printer and PC unit, said one person familiar with the plan.