After A 2-Year Hiatus, Meg Whitman Says HP Will Be Shopping For Acquisitions Again Soon
For most of her tenure as CEO Whitman has been dealing with the repercussions of the acquisition just before that, the $11 billion purchase of software maker Autonomy, orchestrated by her predecessor Leo Apotheker (though Whitman was on the board of directors at the time). HP took on a boatload of debt to finance the acquisition.
Whitman later admitted HP paid too much and the company wrote-off $8.8 billion, with HP claiming fraud, saying it it found $5 billion worth of "accounting improprieties" on Autonomy's books, a charge that Autonomy's founder, Mike Lynch, has vehemently denied.
The situation has escalated into investigations by regulators in the U.S. and U.K., the resignation of two of HP's board members, the replacement of the chairman of the board, and multiple shareholder lawsuits.
Bloomberg reports that HP is currently in talks to try and settle these suits. During a conference call with analysts on Thursday, Whitman and HP CFO Cathie Lesjak warned, multiple times, that HP has set aside a larger chunk of cash than typical to cover litigation some litigation expenses. It hasn't yet disclosed exactly how much money.
But all of that could mean that HP is finally moving behind the Autonomy disaster.
On Thursday, HP posted a two-in-a-row beat on earnings expectations and said its cash situation is improving. Operating net cash increased by $1.6 billion, the eighth consecutive quarterly improvement of over $1 billion, the company said.
So, after a two-year pause, when asked about acquisitions, Whitman said she may need to start shopping again:
"As this market changes very dramatically, you can see that we may need acquisitions in security, big data, mobility and cloud. We will be very judicious. It will be returns based, and I would say it would be small to medium-sized acquisitions, so that's where we are headed ..."
It will be interesting to see what she buys and how much she spends. HP has a long history of spending big bucks on companies and tech it wants including Palm ($1.2 billion), 3PAR ($2.35 billion), ArcSight ($1.5 billion), 3Com ($2.7 billion), EDS ($13.9 billion) and Compaq ($25 billion).
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market