There have been many rumors of Samsung wanting to acquire HP’s PC division, or PSG (Personal Systems Group) as it is called internally. Considering these have come from different sources and industry people it is hard to deny there is something going on between HP and Samsung, but it doesn’t look like HP is selling, but will form a subsidiary from PSG.
It wasn’t long ago HP announed that it will first shut down development sales of smartphones and tablets with WebOS, and separate PSG from the mother company. Considering HP is the biggest PC manufacturer today this came as a big surprise. Several different industry sources, in monitor manufacturing and OEM partners, have confirmed rumors that HP and Samsung has been discussing a potential deal.
Nothing has been decided, but in talks with Reuters HP says that it would prefer a spin-off of the PC division. This means breaking off the PC division into a subsidiary under HP. The advantage of this is that HP will have two different companies, with separate finances while keeping the world’s largest PC division within the company. It will also be the best for the stock holders, employees and consumers.
The PC division at HP could become a subsidiary of HP
HP wants to be the new Oracle and IBM, and focus more on software than before and offer a complete eco system for small and big companies, infrastructure, countries and more, where margins are bigger. HP’s PC division are certainly making a profit so it would stand by itself, but the reason it wants to break off the PC division is that the margins continues to drop, which also matches other PC manufacturer and the profit is marginalized.
If HP breaks off the PC division or simply sell it to Samsung is still uncertain, since HP is working through the different alternatives and estimate the effects.
Source: Reuters
