HP turned down a $33 billion (N12trn) hostile takeover bid from Xerox on Sunday, with the fact statement that it undervalued the computer and printer making giant.
But a statement from the HP board stated that discussion of a possible deal with its rival, a venerable tech company in the US, best known for its photocopy machines is being considered.
BLACK FRIDAY SALE IS ON!
(NOV 18TH - 2ND DEC. 2019)
Stating that potential benefits of consolidation is recognized, and are open to exploring the possibility of value creation for HP shareholders through a potential combination with Xerox, HP might actually be cooking up something.
But according to the company's board members, there are fundamental questions that need to be addressed first.
It was pointed out that, Xerox’s revenue dropped by roughly $1 billion from $10.2b (roughly N3.7trn) to $9.2b (roughly N2.7trn) since June 2018.
And HP is stated to be three times more valuable than Xerox with a $27 billion (roughly N10trn) in market value.
It is important to mention that Hewlett-Packard (HP) was one of the first Silicon Valley giants. It spun off its enterprise products and services business in 2015, then held onto the PC and printer businesses which led to it being renamed HP Inc.
Xerox whose name became a verb meaning to make a photocopy as a pioneer in photocopy machines was founded in 1906 as Haloid, was the pioneer in photocopy machines.
Should HP go for these? What do you think can come out of the arrangement? Share your thoughts with us in the comment box.
Content creator for Vanaplus Group.