HP To Buy Compaq
by Maarten Goldstein, Sep 03, 2001 8:10pm PDTWell you don't see this every day. CNet is reporting that Hewlett-Packard will buy rival Compaq in a stock swap priced at $25 billion. The boards of both companies have already approved of the transaction, creating a company with a revenue just slightly below IBM, the current largest computer company. Not many other details out there right now. An official announcements is expected tomorrow.
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Here's a bit of an e-mail I sent to my girlfriend who works at Compaq here in Australia, but I guess it applies to this article and the standard Shacker's take at whats going on. remember this really applies to the Australian take on all of this, so flame me or whatever :)
It's amusing, but it adheres to market trends - that is for HUGE companies to merge, and create even larger ones - for no other reason but to absolutely quash any feasible competition. It's disgusting - little companies really don't stand a chance anymore - it's like people trying to go up against Micro$oft, it's just impossible.
As for jobs, employees should be fine. Compaq will continue to operate as per normal, at least for six more months - expect nothing mroe than a mere name change, and perhaps a few changes in procedures, due to Compaq incurring HP's products. I'd imagine the home market PCs will merge ( Pavillion + Presario ), with the corperate stuff remaining much the same ( look at the Compaq swallowing Digital stuff ).
Still, the merge may be a money saving and profit boosting scheme for both parties involved, which may translate to a bit of culling in the staffing dept - but I really doubt that. Compaq and HP are obviously aiming for raw market domination, and with this merger, they're most likely going to succeed, leaving the rest of the IT industry to play ball, and conform to what ever Compaqard are going to throw at us - because, really, what choices are there left ? Dell ? Gateway ? I'd imagine Dell will be struggling to convince customers to choose them over this potential giant.
I smell some Microsoft involvement here aswell. Compaq and M$ have been in bed over the whole Windows XP introduction, which to me seems like a fitting piece. Microsoft and Compaq have always worked REALLY closely in the States, and it looks to me like this is going to transpire to the International market.
HP ( and Compaq ) + Microsoft = World domination. No longer in just the software front, but it seems the hardware front is going to take a turn for the worse aswell.
The OEM market will either flourish or be absolutely smashed by this, meaning the once acessible to every man and his dog IT industry, is going to be a pretty tightly governed and regulated market - for both professionals and enthusiasts alike.
Underground development and b1tchings is going to increase ten-fold. If people thought the Open Source and Linux wars waged a couple years ago were big, they haven't seen anything yet.
I think this will really impact this industry in a big way - thats assuming my 'Micro$oft being in bed with these guys' theory is correct. I really hope I'm wrong. I hate market domination, and this is a prime example of it.
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By marrying HP's "Invent" with Compaq's "Inspiration Technology" we will build a true innovation machine.
NOOOOOOOOOOOOOOOOOOOOO!!!!!!!
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If so, then that might translate to "high-ping craputer".
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Sonsabitches.
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heh. i was one of the "excuses" i'm no angel but i got fired because i made 1 mistake by not letting my superiors know that i wasn't coming in on a monday after having come from reno and gotten in at 4am.
i have never heard a bad thing about HP when i worked there, but i thought it was a joke to ask people to cut 5% of their time because HP was "losing money". Of course working for volt i also heard that Manpower was going to take over the contract and we got the typical "we are here for the long haul and <insert company name here> is great and we have a solid relationship with <insert company paying for the services here> and we are also looking into having HP and other contracts to bolster our technical needs".
i hope volt loses it's contract. after having fired 20 or 30% of the staff in roseville i would expect that HP is not happy with what's going on.
it's also nice to know that HP bought a dead system that's similar to their piece of shit.
hahah.
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holy shnikes though. That's a merger if i ever saw one.
Holy shit.
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How will I be able to tell all hp journada owners my iPaq owns them and their mothers? I WONT!
/ [V]
Pretty soon we'll have 4 companies running the planet, as if they don't already
"Oh yes, Ma'am. Compaq is the #1 manufacturer of computers right now. You can't buy a better PC."
I went to their site and they offered pretty much everything I would put in a box -- and Klipsch speakers -- if I were building it myself.
25 million really isn't that much though.
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