HP is writing off about $8bn as a result of the drop in value of the EDS business it acquired in 2008.
Earlier this month HP warned that it would write off $8bn after the business it bought for $13.9bn was devalued.
HP said the downgrading of EDS’s value contributed most of its $8.9bn loss.
But how could EDS, a pioneer of IT services with a list of customers the envy of every IT company on the planet, lose value so quickly?
Peter Brudenall, a lawyer at Lawrence Graham says, “I suspect the EDS business has also lost ground to lower-cost alternatives such as the Indian technology companies.”
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See what other people think in this article I wrote.
And see this article giving 10 reasons for EDS’s decreasing value.
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