The latest chapter in HP’s recent history sees it reduce the value of its Automony acquisition by $8.8bn. HP paid $11.7bn for the company back in August 2011.
At the time HP said the acquisition positioned it as a leader in the large and growing enterprise information management space.
But now it says it was wilfully misled by ‘former’ members of Autonomy’s management team in the lead up to its acquisition. Serious stuff.
Let’s not forget HP wrote off a similar amount as a result to the failure of its EDS acquisition to perform. It acquired EDS in 2008 for $13.9bn.
And don’t forget in 2010 HP paid $1.2bn for smartphone maker Palm. About a year later it discontinued the product line.
One source told me that these three bad acquisitions tell a story. “HP is either stupid or unloved.”
What do you think?