Case Study

HP Merger FAQ Nate Orenstam Sunday, March 17, 2002 |Related News: | |Congrats Carly! | |Congrats Walter! | |HP Staff Aw are of Compaq | |[pic]Whats tonic | You Had To Ask... Here is the unofficial FAQ (Frequently Asked Questions) regarding the HP / Compaq Merger. Why does this coalition make strategic sense for HP and Compaq? This merger creates an $87 billion global technology heavyweight that can lose money for a long clock time go the management tries to figure out who to sell the have company to. I thought the plan was to run the new company with some new strategy? Strategy, shmategy. What matters is getting the parcel price up. Im sure youve heard of the Greater spread out theory of investment: you buy overpriced stock in the hope of selling to to someone to a bigger fool. Well, the aforesaid(prenominal) thing applies in mergers and acquisitions. After all, look at descent and Tandem. Besides, the companys already spent far more promoting the merger than theyve ever spent marketing the products.

Who approached who? Technically the question should be Who approached whom? Alright then, Mr. Smartypants, who approached whom? Carly first noticed Michael 18 months ago while at a cocktail bar in Houston. Carly asked Michael if hed same to explore licensing the HP-UX operating system for use in Compaqs pipeline of servers. When Michael said yes, Carly felt her heart go pitter patter manage an HP Oscilliscope from years gone by. They had drinks and the discussion eventually direct to more, ah, strategic possibilities. Have they done it yet? No. Carly and Michael are both very happily married and in they would neer do it with another CEO until the merger is, well, consumated. Check sticker after the votes are tallied. What about the photos I saw on the Internet? While the participants look a lot akin Carly and Michael, it... If you want to get a full essay, order it on our website: Orderessay

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