HP Wanted $1.2B "Refund" Via WebOS Sale, Gets Smacked With Reality
December 29, 2011 1:49 PM
comment(s) - last by
(Source: Satan's Laundromat)
Apparently you can't run your operating system into the ground and expect a full refund
How much does Hewlett-Packard Comp. (
) think its leftovers are worth? Apparently $1.2B USD,
HP allegedly in mid-2011 asked various parties if they were willing to pay it $1.2B USD for the remains of webOS/Palm. That's a pretty gutsy move given that HP
paid $1.2B USD for Palm
defunct CEO Léo Apotheker
HP's sage board
then proceeded to run webOS into the ground, finally
terminating its product lineup
and cleaning house of
both the engineering staff
, that's a pretty ambitious figure to be floating, to say the least. This is hardly atypical thinking at HP of late, though -- consider this is the company that seriously
considered cutting out the heart of its busines
s -- consumer PCs -- and only reconsidered after being
smacked with shareholder class action lawsuits
and public outcry.
[Image Source: Gigaom]
Sadly HP appears to have been smacked hard with reality. Samsung Electronics Comp., Ltd. (
) -- thought to be one of the potential buyers HP approached --
laughed at the prospect of such a sale
insisting it would never buy webOS. Well, it would certainly never buy it at $1.2B USD -- that's for sure.
HP's recent woes have few parallels in the technology industry, but are at least remarkably similar to those of Research in Motion, Ltd.'s (
) and its flaccid executive squad. Both companies were once remarkably profitable, but have seen a
veritable train wreck of recent events
and have struggled as shareholders blasted them for
Recent reports indicated that HP might end up getting nothing for webOS, opting instead to offer the legacy ultra-mobile OS
as open source software
HP's new CEO
Meg Whitman as saying that HP "could" launch new webOS tablets in 2013.
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RE: HP Seems to Have the Competency of a Government Agency
12/30/2011 11:07:17 AM
OK, that bit about Chrysler and GM being saved needs to get the truth treatment.
Chrysler is now a foreign company - it's owned by Fiat. I have a hard time calling that "saved".
GM would have gone into bankruptcy proceedings, which would have allowed the company to free itself from contracts and certain debts under a reorganization scheme permitted under US law. The company would not have gone away, cars would still be made and people would still be employed.
Instead, bankruptcy would have ended the union contracts holding GM back from competing on price and quality, and the contracts could have been recast in a way appropriate for the 21st century. GM could have come out stronger, and in good shape for years to come.
Instead, under direct supervision of the Obama administration and Car Czar Rattner, a new company called General Motors Holding was created, and all worthwhile assets were transferred to it as well as all union contracts. All the idol plants and environmental cleanups were left with Old GM. In the new company, most ownership rights were split between the US government, the Canadian government, and the UAW.
(Go ahead, try to find the value of current GM stock in July, 2010. You can't, because it didn't exist until November 2010.)
So in truth, the GM that existed before is no more. That company is not in operation and builds nothing. There is a new company with a similar name that carried on.
This effectively screwed bondholders and small businesses owed money by GM. These people, in bankruptcy proceedings, would have been first in line to receive compensation/stock in the new company from the court proceedings. Instead, they got nothing. And GM is left saddled with paying people $70,000+ per year, with executive-style benefits, to hang doors on cars.
If you look at GM stock performance, it’s dropping. Because the same structural problems that kept it from succeeding before are still in place.
What bankruptcy would have fixed, Obama prevented.
That’s not saving; that’s prolonging the inevitable.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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