Take a look at Conduent. Xerox bought ACS to expand services. Icahn spun it off after raiding Xerox to form Conduent. Now it's buried in debt. All Xerox employees that transferred are long gone. We are living through the final chapter of the HP & Xerox stories. Focus on your next career move and have no sympathy for the damage that the loss of your talent & expertise will cause.
15 replies (most recent on top)
123AQmfa-3feb
His name is Enrique Lores, not Voldemort. Also T–d is not bad word....
Xerox has no metal 3D plan and has not invested there. The Vader acquisition is to give the market an appearance there is a revenue alternative but they have invested $0 and in fact have let 50% of Vader employees go. Hopefully HP doesn’t buy XRX thinking it will reap a benefit there.
Current CEO EL job is polish a t–d to drive best offer for takeover. Suspect Dion did not relish it so had convenient "family health" issue in Australia. He made his beans.
HP 3D metals is on a good track. Plastics is a disaster. Industrial printing is growing but slow. These business units would be attractive for a buy ou/separation.
Office/consumer print is in a Kodak moment. PC's - hell if I know but there are only so many rabbits in the hat.
Based on the way HP recently restaffed L2/L3 positions I am convinced it as about rebuilding the company - unqualified executives in wrong positions.
I guess HP could continue to expand and take on more of the declining market but they can only ride that so long. I think they are about to face the music.
Yeah, the DeskJet gold mine is no more. Whether new products (3D printing, VR, etc.) can pick up the slack remains to be seen.
You are aware that over a year ago HP 3D printers were being used in car production, by Volkswagen no less.
Watch
https://www.youtube.com/watch?v=tTBUTysKfgM
HP had a poison pill at one time (almost used against GE decades ago) but I don't know if they would do it here.
Internally, there was a lot of discussion by the employees if the split was intended to shed HP Inc as future failure or to allow it to focus more on it's markets and thrive. For four years HP Inc has done well (despite the printing decline.)
But here they are now in a big hurt. PC's are a commodity although commercial margins aren't half bad. However printing just isn't contributing enough anymore. I guess HP could continue to expand and take on more of the declining market but they can only ride that so long. I think they are about to face the music.
Merging, buying or being bought will only buy more time but printing outside of commercial printing is going down and the supplies revenues will not recover. I don't see 3D or commercial printing back-filling that.
So, what to do, what to do ...
If you read between the lines, HP said sure but for more money. It’s going to happen.
Being that there was no mention of a poison pill to prevent a hostile takeover, I think it's just a matter of price. I'm sure that Xerox would rather not go down the hostile takeover path, as that often involves paying top (and unpredictable) dollar, they would rather have a deal on paper.
It's sad to see that HPQ's market cap is only 30B. Even has been ORCL is worth almost 200B
If you read between the lines, HP said sure but for more money. It’s going to happen.
Xerox is pushing for dominance in the metal and 3D printing domains. The HP board rejected this offer but remains open to discussions. I think there will be a second offer.
The might have rejected it but they companies will join one way or the other. It has to happen.
I am so glad that HP rejected Xerox. Since I work in R&D of HP, I can confidently say that HP has a lot of new products in the pipeline. Can't say the same for Xerox. HP is getting into medical devices now. Consumer printing is being wound down but the huge industrial printers (they sell for $8-16 mil each) are still selling strong and there are still more being developed. 3D is actually further along than most people think and it is the metal 3D that is showing the most success and yes they have sold some of those 3D printers for metals already. In fact you can see them on YouTube. In case you are wondering, yes I love working at HP, been here almost 5 years and my job is pretty secure per my managers, yes I have more than one.
@1YPX, where is the announcement? Can't just put out a blink statement! Can you list any links, news stories or announcements?
HP board rejected bid
Two wrongs don't make a right. The printing business is going the way of Kodak film. The synergies that are being touted will be a one time event, cutting 50% of the combined workforce. There is nothing new in terms of innovation in the Xerox pipeline. I'm willing to bet HP is in the same boat.
Not even close.
Xerox needs HP’s printer line. HP needs Xerox’s copier and production line.
It only makes sense.