HP Chairman Steps Down in the Wake of Autonomy Acquisition Fiasco
April 5, 2013 8:50 AM
comment(s) - last by
Ex-chairman will remain a HP director
HP has announced that its chairman, Ray Lane, has stepped down from his post. Lane has been under fire from shareholders due to his role in the acquisition of software company Autonomy.
"After reflecting on the stockholder vote last month, I've decided to step down as executive chairman to reduce any distraction from HP's ongoing turnaround," Lane said in statement. "Since I joined HP's board a little over two years ago, I've been committed to board evolution to ensure our turnaround and future success."
HP posted horrific financial results in November of 2012 to the tune of an
$8.8 billion loss
. HP blamed the massive loss on what it called improprieties discovered after its acquisition of the software company Autonomy. Not long after HP claimed accounting improprieties led it to overpay for Autonomy, an ex owner of the company stepped forward and
blasted HP over its accusations
HP maintained that Autonomy "invented" nearly $200 million in bogus revenue over two years. HP maintained that this increased “revenue” led it to overpay significantly in its purchase of the company.
Along with Lane resigning from the HP board, two other directors also left HP. Interim chairman will be HP director and investor Ralph Whitworth. Whitworth will continue acting as chairman of HP's board until a permanent replacement can be found.
This article is over a month old, voting and posting comments is disabled
RE: How is HP so stupid these days?
4/5/2013 10:01:29 AM
I agree, they need to spend more time and money on developing lines of consumer products people actually want to buy instead of discontinuing their higher end consumer products and killing their phone lines entirely.
As it is, HP doesn't have anything a discerning consumer would like to buy. Now they only sell low end computers and that's not where the money is. Ask Apple.
RE: How is HP so stupid these days?
4/6/2013 4:36:15 PM
You can thank Carly Fiorina for that. Shortly after becoming HP's CEO in 1999, she decided HP should challenge Dell for the title of biggest consumer computer vendor in the world. She set about doing it by gutting anything low volume (e.g. their high-end calculators and testing equipment) or high cost (e.g. their R&D department), and concentrating solely on high-volume computer sales.
Well, she got her wish. Unfortunately she never seemed to understand that the high-volume stuff also has the lowest margins. And by the time she left the damage was done. HP is now pretty much stuck in the role of low-end high-volume computer sales whether they want it or not. As the Russians were fond of saying soon after Communism fell, it's easy to turn an aquarium into a fish market, but it's hard to turn the fish market back into an aquarium.
The old HP had engineers and programmers who lived and breathed the tech coming up with new ways to improve it. The best ideas would percolate up through management and HP would market them as new or improved products. The HP we have now is pretty much a bunch of MBAs who don't really understand tech trying to think of what new tech ideas will sell. And throwing a tantrum when one of their ideas (e.g. WebOS or Autonomy) doesn't pan out.
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
Ex-Autonomy Owner Blast HP's Accusations
November 26, 2012, 12:43 PM
HP Posts Horrific Guidance, Will Take $8.8B USD Hit on "Improprieties"
November 20, 2012, 9:27 AM
Tech's Tax Day Fortunate Few: Qualcomm, Xerox, GE, et al. Pay Little or No Taxes
April 15, 2015, 11:30 AM
LinkNYC Terminals to Blanket New York City With Free WiFi, Free Calls, and Ads
November 17, 2014, 6:50 PM
Microsoft is Open-Sourcing Most of .NET, Adding OS X and Linux Support
November 12, 2014, 8:27 PM
Home Depot Lost 53 Million Emails, Blames Windows, Buys Execs New Macs
November 9, 2014, 5:00 PM
Former NSA Lawyer: If Google, Apple Encrypt User Data, They’ll Wither on the Vine Like Blackberry
November 6, 2014, 12:15 PM
Report: AT&T Eyeing $40B DirecTV Purchase
May 1, 2014, 8:00 AM
Most Popular Articles
Quick Note: Lady Macbath -- One Japanese Woman's Apple Themed Revenge
April 23, 2015, 11:47 AM
Colorado Man Cited for "Killing His Computer" With a Handgun
April 22, 2015, 1:06 PM
Even Hillary Clinton Was Addicted to Nintendo Gameboy
April 21, 2015, 10:30 PM
Newly Discovered Costa Rican Glass Frog is Kermit's Doppelgänger
April 22, 2015, 11:26 AM
HBO to VPN HBO Now Users: Prove You Live in U.S. or We Will Terminate You
April 21, 2015, 12:17 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information