Was the HP Compaq merger successful?
Under Fiorina’s Leadership, the HP Merger with Compaq Was One of the Most Successful High-Tech Mergers In History. With the economic recession of 2001 still crippling the tech industry, Carly realized that HP’s potential was not being met.
Should HP and Compaq merge?
HP shareowners will own approximately 64% and Compaq shareowners 36% of the merged company….Transaction Summary:
| Structure: | Stock-for-stock merger |
|---|---|
| Exchange Ratio: | 0.6325 of an HP share per Compaq share |
| Current Value: | Approximately $25 billion |
| Ownership: | HP shareholders 64%; Compaq shareholders 36% |
| Accounting: | Purchase |
Why did HP merge with Compaq?
HP said the merger paved the way for it to become the No. 1 IT company in the world. “The combination of HP and Compaq built a business that achieved more together much faster than either company could on its own and built the foundation for the world’s largest technology company,” HP said in a statement to CRN.
Why was Compaq sold to HP?
It rose to become the largest supplier of PC systems during the 1990s before being overtaken by HP in 2001. Struggling to keep up in the price wars against Dell, as well as with a risky acquisition of DEC, Compaq was acquired for US$25 billion by HP in 2002.
When did HP acquire Compaq?
While the Itanium partnership with Intel surely started HP down the road to hell, it was accelerated in 2001 when HP, under the guidance of CEO Carly Fiorina decided to merge with Compaq in a $25 billion dollar deal.
Are HP and Compaq the same?
Compaq was acquired by the Hewlett-Packard Company in 2002.
When did HP merge with Compaq?
2001
While the Itanium partnership with Intel surely started HP down the road to hell, it was accelerated in 2001 when HP, under the guidance of CEO Carly Fiorina decided to merge with Compaq in a $25 billion dollar deal.
Why did HP and Compaq merger failed?
The prime objection was that Compaq had many overlapping product lines and would get the company involved in the low-margin PC business that its main competitor, IBM, was already in the process of exiting.
Do they still make Compaq computers?
Although Compaq was no longer an independent company, the Compaq brand continued as a Hewlett-Packard line of personal computers until 2013.
What happened to the HP-Compaq merger?
When HP and Compaq announced a $25 billion merger agreement10 years ago this week on Sept. 3, 2001, it shocked the industry and sent apprehension and anxiety rippling through the channel as naysayers predicted a very painful and even disastrous integration.
What is the difference between HP and Compaq?
HP is facing the problem of lack of organic growth strategy whereas,Compaq does not have strong presence in UNIX market. Announcement of merger resulted in the decline in the HP’s share prices.
Was the HP-HP merger a good move for the company?
With Webb McKinney, a former HP executive vice president who led HP’s post-merger integration team, Burgelman analyzed the merger to distill important lessons for other managers. “Ultimately, it turned out to be a good move,” says Burgelman. “But although the logic of the merger was correct, executing it was difficult.”
How will the HP-AT merger affect the market?
The merger of both the companies can have a major impact on the market. Both the companies have their own area of expertise, which combined, can prove to be a threat to the competitors. The share price can decrease further after the opposition from HP.