Hewlett-Packard Officially Files to Split
Tech giant details its two new companies, HP Inc. and Hewlett Packard Enterprises
Hewlett-Packard CEO Meg Whitman accepted the need for two separate companies after recognizing the ‘lightning speed’ of market changes. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS
Hewlett-Packard Co. on Wednesday filed paperwork with the Securities Exchange Commission, taking an important step toward the tech giant’s breakup on Nov. 1.
The filing outlines the balance sheet, based on the past performance of H-P’s Enterprise Group, of a new corporate technology company called Hewlett Packard Enterprise Co. That entity had revenue of about $55 billion and total assets of $65 billion in the fiscal year ended in October, according to the document.
Hewlett-Packard said Wednesday that the second company resulting from the split, HP Inc., isn’t required to file a similar disclosure document because it is considered the parent company. H-P said it would issue forward-looking financial statements about HP Inc., which plans to sell PCs and printers, before the November separation.
Hewlett-Packard CEO Meg Whitman’s decision to divide in two arose from the company’s struggles through much of the past decade with declining revenue, corporate scandals and management changes. H-P stood on the sidelines as companies such asAmazon.com Inc. and Apple Inc. created compelling cloud computing, smartphone and tablet businesses. In the end, H-P’s size worked against it, Ms. Whitman said in an interview last week.
“We needed to be smaller, more nimble, we needed to be more focused,” she said. “And we needed to have a capital structure for each company that would allow them to pursue their objectives.”
