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HP/CPQ Merger

T

Tanner

Diamond Member
I searched, and I didn't find this anywhere in here...so I was wonderin' what Uall thought about this merger? do U think that it's going to make DELL and Gateway have to price more competitvely?
 
i dunno. all i know is dell is HUGE! the few schools i been to all use dells. the libraries i visited used dells. from what i heard... a lot of corperations use dells. its like everywhere i look. anyone have a compaq/hp sighting, other than in compusa/best buy/circuit city?
 
not to mention that DELL's networth is like 7-8x that of Gateway (the next closest one in my opinion) 😉
 


<< not to mention that DELL's networth is like 7-8x that of Gateway (the next closest one in my opinion) 😉 >>


Cuz of that damn Dell kid...
 


<<

<< not to mention that DELL's networth is like 7-8x that of Gateway (the next closest one in my opinion) 😉 >>


Cuz of that damn Dell kid... >>

That dell kid is awesome.

I hate Dells, and I don't particularly like him. But whoever dreamt up him for a marketting tool should get their salary doubled. He's a genius.
 


<< which kid? the one in the commercial? >>



No, the long haired guy who loads the trucks on 3rd shift in Austin. You know, the one who wears headphones and jams out all night.
 
The merger will never pass, so I'm not worried about much. PC's are a commodity buisness, even for Dell(although they get away with higher costs due to supurb support); a merger at this point would just reduce the players in the market, as HP/CPQ would never be able to profitably keep up with Dell on hardware and catch up to them on support.😱
 
I hope the merger falls flat. Since I work for HP it is going to have a significant impact on my life. I could spent years studying the data and still not know if it is the correct economic thing to do, but I am positive that it will mean the end of Hewlett Packard. Actually Carly has gone a long ways towards destroying much that made the company a great place to work. We can only hope that if the merger goes down, so does Carly. (hmmm..... was that a freudian slip?) Well we just keep pumping out print heads, there will be a new printer on the market soon. The cardridge is a bI@@ch to make, but the prints look GOOD! Sure hope you all like it, and print out Sh@t like crazy!

I just retired my 5yr old Pavillion 7130P, not because it quit but because no one in the family (even the 8yr old) wanted to run a P130) I hope I never see another rescue disk in my life!
 
Virge, Dell's cost structure is actually lower than HP and Compaq's. They have no retail middleman since they are a direct-sales company.
 
From the stories I've read on www.wsj.com I'm not 100% sure which way the merger will go, but either way in my opinion, Dell will be the clear winner. Gateway IMHO has been struggling to say alive and profitable, and may be the wildcard in this whole merger situation.

edit: A quck look at closing stock prices for the four companies I mentioned:

GTW=5.60
CPQ=10.33
HWP=19.05
DELL=25.72
 
hp & compaq together would make it a very formidable competitor against dell. how does dell end up the clear winner?
 


<< hp & compaq together would make it a very formidable competitor against dell. how does dell end up the clear winner? >>


spankyOO7, as I said, it was my opinion, but let me kinda explain how I got to that deduction: If HWP & CPQ do merge, it will not be an easy transition, jobs will be lost, the general public may be confused, and both companies will have to figure out what to keep and what to lose, be it certain technology products or R&D research. Dell, on the other hand, w/ only have to deal w/ gaining better margins on their current products, and making sure they keep their company trim and fit.
 


<< a lot of corperations use dells. its like everywhere i look. anyone have a compaq/hp sighting, other than in compusa/best buy/circuit city? >>


SPLS uses IBM Xeon servers in their stores, this is just an addition to your post Spanky007 🙂
 
Zim pretty much hit in on the head. Wall street has mixed opinions on whether it will help the two merging companies but most agree that it is a good thing for Dell, particularly in the short term.

There's gonna be a lot of beaurocracy going into the merger, a lot of morale lost with the layoffs, and a heckuva lot of restructuring they're both going to have to do since there's so much overlap between the two. While they are concentrating on the merger initiatives, Dell can continually focus on stealing away more and more market share.
 


<< In concentrating on the merger initiatives, Dell can continually focus on stealing away more and more market share. >>


Mani, you just gave a "Cliff Notes" version of my post, wish I was that concise, thank you 😀
 


<< Virge, Dell's cost structure is actually lower than HP and Compaq's. They have no retail middleman since they are a direct-sales company. >>



Sorry, I guess I didn't explain it too well.😱 Dell's cost structure is indeed lower, but they can fetch a higher price because of their service, in comparison to just the computer(in other words, they can make a tidy profit on the service deals).
 
Whether or not the merger will be completed is a crapshoot at this point. They'll need a very high return of the proxy ballots to overcome the negative vote coming from the founder's family members.

If it does happen, it's a mistake. There simply isn't enough synergy and economy of scale to overcome the radically different corporate cultures of the two entities. Compaq and HP both should know better, because both have screwed the pooch in mergers in the past.

Regardless of the outcome, Dell will be just fine. While their competitiors have always fallen all over each other in search of the "next big thing", Michael and company have kept dancing with the one that brung them. Dell has also had a grand total of one acquisition in company history, while others have had failed merger after failed merger.

Russ, NCNE
 
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