Palo Alto, Calif. – More than two months after first announcing plans to potentially sell or spin off its PC unit, Palo Alto-based HP said on Thursday that it has decided to keep its Personal Systems Group (PSG) as part of the company.
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG,” said Meg Whitman, the company’s newly installed president and CEO. “It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders and right for employees.”
HP said its evaluation revealed the deep level of integration across its operations, such as supply chain, IT and procurement, and the extent to which the unit contributes to the company’s overall brand value. ”
Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation,” HP said. PSG generated revenues totaling $40.7 billion for fiscal year 2010.
This article was also published in Bay Area Tech Wire.
Related link:
http://www.hp.com/investor/PSG-Decision
