HP to become two companies as consumer PC and printer business splits from corporate services

A release came out detailing a five-year turnaround plan for HP. According to the release, we are about to witness a separation into two companies.

The division for corporate hardware and services will become Hewlett-Packard Enterprise under CEO Meg Whitman, while HP Inc. is to become the printing and PC brand, with new opportunities like 3D printing arising. The CEO of HP Inc. will be Dion Weisler and notably, Whitman remains as Chairman of the board of the consumer company.

The separation allows the two companies to expand with their own tempo. Moreover, it creates new possibilities for partnerships as each stem has its own objectives and requirements.

There is a chance that by making the two companies work so closely, they were essentially forbidden to form relationships with companies in direct competition with one of the halves. Specialists predict the split will reduce debt at operating level and help make the organization more able to deal with market changes.  

Exploring further shows that the move opens up potential acquisition opportunities. In fact, the enterprise division has been attracting interest from businesses like EMC. The separation is set to be completed before the end of fiscal 2015.