HP will not spin off its PC division, saying it would be better to keep its Personal Systems Group (PSG) within the company for its shareholders and customers.
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said Meg Whitman, HP president and chief executive officer.
“HP is committed to PSG, and together we are stronger,” she said.
Under the leadership of Leo Apotheker, HP previously planned to spin off its PC division and stop producing webOS products.
The move shocked investors and shortly afterwards, Whitman replaced Apotheker as HP said "additional attributes" were needed for the CEO of the company. HP also moved to reconsider its decision to spin off the PC business.
Its strategic review of the PC business showed it was deeply integrated with “key operations” within the company and boosted HP’s brand value. HP also found that the cost of spinning off the company would outweigh “any benefits of separation.”
As for webOS, This Is My Next reports that HP is still deciding what it will do about its long-term future in the next couple of months. For its next tablet, it aims to use the Windows 8 platform.
In spite of the confusion experienced over the past number of months, HP emphasised it was now committed to its PC business and was confident it could drive profitable growth.
“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry’s broadest portfolio of PCs, workstations and more,” said Todd Bradley, executive vice-president of the Personal Systems Group at HP.
“We intend to make the leading PC business in the world even better,” he said.