HP's Monstrous Writedown

PC giant Hewlett-Packard  (NYSE: HPQ  ) has recently said it was taking an $8.8 billion impairment charge related to its 2011 acquisition of British software maker Autonomy. That was a deal put together by ex-CEO Leo Apotheker. The big twist in this story is that HP says Autonomy defrauded it by fudging the numbers and overvaluing itself. Current CEO Meg Whitman has now overseen approximately $20 billion in writedowns. Going forward, HP needs to refocus on products, which is exactly what Whitman said on the conference call. It will launch tablets running Microsoft  (NASDAQ: MSFT  ) Windows 8, then eventually a smartphone to challenge Apple  (NASDAQ: AAPL  ) and Google  (NASDAQ: GOOGL  ) .

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.


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  • Report this Comment On November 22, 2012, at 1:01 PM, chinaman8 wrote:

    true but what is going on with HP's services, software, servers, and network businesses?

    they were dumb to overpay 64% for Autonomy when it had no other suitors, it's their own fault

    and they should have stuck with the excellent webOS tablets and phones, they just priced them too high, equal to Apple, but when they lowered the price millions bought them

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