Well there are mergers and break up among companies in the technological sector. Big shots in the industry like Facebook, Whatapp, Ecommerce websites like eBay undergoing recent change as well as developments. Here are some of recent merger as well breakup in the industry.
HP to break down into two units
75 year old company Hewlett-Packard is a brand when it comes to computer enterprise industry. The company has announced a split recently to divide it two enterprises thus separating its two businesses. The split is to take place between its technological services and the personal- computer services and the printer business.
During the recent year, the company has witnessed latest resurrection procedure. However here has been discussion about the split for the past one year. According to reports, the technological business will continue with the name Hewlett- Packard enterprise while the PC and printer business will continue with the name HP Inc.
Now it is the question of operating head. The business enterprise will be headed by the CEO of HP Meg Whitman. The printer as well as PC chief Dion Weisler is named the CEO of HP Inc. According to the CEO Whitman statement, this step will certainly help in boosting each new company and will also provide them with independence, financial sources as well as increase their customer dynamics and will also create long term good relations with the shareholders.
To reverse its drop in the sales owing to IBM and Oracle, HP in the year 2012 started its lucrative printing business. And well there has been considerable rise in the sales. The PC shipment has helped in boosting the year revenue from 1% to $27.6 billion while the PCs and notebooks witnessed an upsurge of 12% during that time. The desktop sales are reported to account 40% of the generated Revenue. Now only time can decide whether break down can prove to be beneficial.
EBay to separate from its financial section PayPal
Well now moving on to the news of previous week, there is again news of separation. Online Auction dominator EBay decided to break from its payment source PayPal. 12 years of association is coming to end very soon stating various reasons behind the spin off. The association of the above companies has certainly prove to beneficial for both as PayPal has solved EBay’s problem of safe and secure payment gateway.
According to sources, it is believed that many activist within the company remarked that the worth and value of PayPal was undermined if it was a part of the EBay business. It is said that this campaign of separation was done by activist investor Carl Icahn which finally forced EBay to agree to the break up. It is reported that Dan Schulman is to become the chief executive of PayPal. Previously he was the former head of American express’s online business and payment section. On the other hand, EBay will be lead by Devin Wenig who is the present president of EBay marketplaces.
The Big Merger of Facebook and Whatapp
Facebook officially seals the deal of Whatapp at $22 billion. Talks have been there regarding the Merger since February. Whatapp has been operating individually since then after the acquisition; Facebook will have sole right over Whatapp, though they have assured that here would not be any big change in the company soon. The deal was waiting to be approved by European commission who has finally given thumbs up stating that these two are not close competitors and it would affect one another business certainly.
The founders of Whatapp namely Jan Koum and former Yahoo Engineer Brian Acton is said to have collected $6.8 billion and $3.5 billion respectively as a profit from the deal. In fact Koum will also get to be one of the board members with a salary equivalent to Facebook CEO Mark Zuckerberg. Now apart from that, Koum will surely be in a profitable position with his hefty collections of Shares of the Company.
This has lead to a lot of talks as well as controversial statements in the chat market as lots of companies now aspire to stretch their networks by mergers. It is heard that Snapchat is under talks with Yahoo. However it is on time to decide who will get what share of profit or increase profit margins.