HP dropped a bombshell on the investment community: The tech conglomerate said it was taking a goodwill charge, or write-down of $8 billion. It didn’t say for what exactly — just that it stems from the recent trading values of HP’s stock, coupled with market conditions and business trends within the services segment. However, the write-down is widely assumed to be associated with HP’s $14 billion acquisition of EDS four years ago. The charge is expected to result in a mammoth-sized quarterly net loss when HP reports its results later this month.
This is a poorly researched article that did not look for the relevant information already available in the public domain. The charge was due to the recent acquisition of the company called Autonomy (as HP announced to the analysts with the necessary explanations) and nothing to do with the EDS merger. Using an untrue/unchecked statement in the title is bad journalism and particularly irritating to more informed readership.
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HP Groans Under Weight of Failed EDS Merger
Posted by: Erika Morphy August 9, 2012 11:52 AMHP dropped a bombshell on the investment community: The tech conglomerate said it was taking a goodwill charge, or write-down of $8 billion. It didn’t say for what exactly — just that it stems from the recent trading values of HP’s stock, coupled with market conditions and business trends within the services segment. However, the write-down is widely assumed to be associated with HP’s $14 billion acquisition of EDS four years ago. The charge is expected to result in a mammoth-sized quarterly net loss when HP reports its results later this month.