HP’s PC Division Decision This Month

HP will decide on the future of its PC business this month, according to a statement from its newly installed CEO.

While it was under the Apotheker captaincy the firm announced rather shocking plans to dump the PC business. Okay, it didn’t explicitly say that, rather it said that it would consider selling it or spinning it off, which apparently meant something else to HP than it did to normal people.

According to Bloomberg, new HP CEO Meg Whitman sprinkled a little more colour into the HP PC business tapestry, and in a conference call said that the firm is almost ready to say what its plans are.

It’s likely that shareholders and the board are still reeling from the suggestion, but the extra time will give HP room to decide on what it wants to do with the still profitable, but boring hardware arm.

While it was under Leo Apotheker’s rule the firm had given itself the deadline of the end of the year for a decision, but presumably sick of people asking her, “what are we going to do with the PC business?”, Whitman has bought the decision forward.

Read More….

Will Oracle Buy HP?

Word on the street is that Oracle has threatened to buy its sworn enemy HP. According to the Times of India, HP directors are terrified that their falling shares would make the company vulnerable to a bid from Oracle. Apparently this was the reason for the sudden sacking of Leo Apotheker.

Oracle has considered informally whether to approach Hewlett-Packard, but it’s unlikely to make a bid any time soon. But to make sure HP has hired Goldman Sachs to help it prepare for any possible moves by activist investors, one person said.

If Oracle were to make a hostile takeover it would be with the sole aim of getting rid of a lot of people who have hacked Larry Ellison off. It might even result in Mark Hurd returning to the company.

Read More….

Is HP Going To Court?

HP and its top executives have been accused of misleading investors before a slump in its stock price.

HP is facing a class action lawsuit filed by Robbins Geller Rudman and Down alleging that CEO Leo Apotheker and CFO Cathie Lesjak misled investors before making announcements that included the possible spin-off of its PC business, dumping WebOS devices and the purchase of British software outfit Autonomy.

Those announcements, all made in one afternoon, led to a 20 per cent drop in HP’s share price the following day. That, according to Reuters, was the largest one day decline in HP’s share price since 1987.

The lawsuit against HP does not specify damages but it serves to highlight the growing concern at the way Apotheker is leading HP. The firm’s announcement that it was considering leaving the PC business was a shock to many, but its decision to dump its WebOS devices was perhaps the biggest shock of the lot.

While HP’s PC business was always seen as a low margin operation, WebOS was viewed as a core part of HP’s future strategy. The firm kept banging on about slipping WebOS into as many devices as possible, however all that talk evaporated, just like HP’s Touchpads when it sold them off at fire sale prices for a massive loss.

Read More Here…..

Shareholder Group Demands RIM Shake-up

An activist shareholder in Research In Motion said on Tuesday it wants the struggling BlackBerry maker to seriously ponder selling itself or spinning off its patent portfolio, sending RIM’s share price higher.

Jaguar Financial Corp said it wants the Canadian company’s board to take control from co-Chief Executives Mike Lazaridis and Jim Balsillie and for up to five of RIM’s independent board members to explore options to maximize shareholder value.

RIM shares were up 1.3 percent at midday Tuesday at $30.52 on the Nasdaq and gained 2.3 percent to C$30.26 on the Toronto Stock Exchange. Both markets were down sharply
overall. RIM shares have lost almost half their value since the start of the year.

“Our call is for (RIM’s board) to take action; no more study, take action. Take action now, before it’s too late,” Jaguar Chief Executive Vic Alboini said in an interview.

Alboini said Jaguar has talked to a select group of shareholders and received broadly positive feedback for its plan.

“We haven’t found one who wasn’t supportive,” he said. “We haven’t found any opposition.”

Read More…

HP Exec Claims Evidence Was Falsified

HP has been accused of producing “false and fabricated” evidence against a former sales executive who the firm claims stole confidential information.

Adrian Jones, who was a sales executive at HP, left the firm to join Oracle in February 2011. HP claims that Jones nabbed a load of confidential information between 10 and 11 February using a removable hard drive. Jones told the court that the hard drive was used by HP for backup and was never in his possession, saying that HP and its outside counsel have confirmed these facts.

Jones’ current employer Oracle said that the accusations leveled at its employee are simply not true, with Deborah Hellinger, a spokeswoman for Oracle telling Bloomberg, “The central allegation in HP’s employment lawsuit against Adrian Jones has turned out to be complete fiction…. If they did it knowingly then HP and their lawyers should be sanctioned. If they did it mistakenly then they simply owe Mr Jones an apology.”

HP is said to have probed Jones’ relationship with a female subordinate, for whom Jones allegedly arranged a 94 per cent pay rise and expensed travel that had no business purpose.

Jones’ case mirrors that of former HP CEO Mark Hurd who left the company after similar expense discrepances were brought to light. Hurd, a close friend of Oracle CEO Larry Ellison, then joined Oracle as co-president within weeks of leaving his post at HP.

HP and Oracle have been going at it hammer and tongs in a largely public row over Oracle’s decision to dump support for Intel’s Itanium architecture. The two companies are in various other legal battles as well, with HP claiming that Oracle had gone from being a partner to a “bitter antagonist”. We assume the next lawsuit will claim that Oracle stole HP’s lunch money and beat it up behind the bike shed, or perhaps the other way around.

Read More….

An Apple/Hulu Hookup In The Works?

Apple Inc is in very preliminary talks to join the bidding for Hulu, the online video site that Walt Disney Co, News Corp and its other owners have put up for sale, Bloomberg cited two anonymous sources as saying.

Apple has begun initial discussions that may eventually lead to an acquisition, Bloomberg reported without providing any more details.

An Apple spokesman declined to comment on the rumor.

Read More…

Facebook Is Display Advertising King

Facebook’s U.S. advertising revenue will reach roughly $2.2 billion in 2011, toppling Yahoo Inc to collect the biggest portion of online display advertising dollars, according to a new study.

Facebook’s U.S. advertising revenue will give it a 17.7 percent share of the market for graphical display ads that appear on websites, according to a report released on Monday by research firm eMarketer.

Last year Facebook garnered 12.2 percent share of the U.S. market.

The figures highlights the growing clout of Facebook, the world’s No.1 Internet social network. It has seen its valuation soar to roughly $80 billion in recent transactions for its shares on the private markets as some investors anticipate it could have an initial public offering next year.

While Facebook has grabbed the top ranking, eMarketer analyst David Hallerman said the overall market for display ads, which include banner ads, video ads and Web page sponsorships, is growing robustly enough that it is benefiting numerous companies.

Read More….

Jobs Returns To Announce Apple’s New Product

Apple Inc CEO Steve Jobs returns on Monday to the stage at San Francisco’s Moscone center to unveil what investors hope will be the next source of growth for the world’s most valuable technology company.

Jobs, who has been on medical leave for several months and last took the stage in March to present the iPad 2, will announce the iCloud, a Web-based service that lets consumers stream music they bought to any Apple device, pitting it against rivals Google Inc and Amazon.com Inc.

That expansion into cloud computing is seen as necessary if the company is to stay competitive with increasingly popular open-sourced software, such as Google’s Android operating system, according to analysts and investors.

The iCloud has the potential to make Apple’s iTunes even more powerful, making it tougher for rivals to keep up, Sterne Agee analyst Shaw Wu said.

“It looks like Apple will likely offer some base service for free,” Wu said. “Competitors, including RIM, Google, Amazon and Microsoft already have a hard time competing with iTunes as it is, but we believe will likely find it even tougher with iCloud enhancements.”

Read More….

« Previous Page