POLL: HP/Compaq merger: For or Against

[dirtboy]

With the HP/Compaq merger coming down to a vote, if you were a shareholder, how would you vote?

I'd vote against... I think this is a stupid move on HP's part.

edit Yes I know I'm an idiot and screwed up the poll screen.

 

[Maverick]

against...it only means higher prices for consumers and businesses. There's no reason to endorse this merger unless you work at HP/Compaq. The only reason they are pushing this is because they're afraid of Dell.

 

[FelixDeCat]

For.

One stronger company is better than two struggling ones. If the deal doesnt go through, HP will stagnate for while Compaq may go out of business, drastically downscale or find a new partner. Maybe Dell ?

 

[NikPreviousAcct]

I'm for it. That way we can concentrate our forces and take them down in flames kinda like two birds with one stone.

nik

 

[AdamDuritz99]

I'm for it. Maybe this is just a simple minded explaination, but... HP and Compaq are both struggling. If they stay seperate then eventually they both might get wiped out. Therefore Dell will have the upper hand and can control the market much more.(ex pricing) If they merge then there will be two decently strong companies, Dell and HP/Compaq (who's merging who?) And that means competition which will keep the priceing war going. I might be out in left field b/c i haven't been keeping up with all of it. But that's how i see it.

peace
sean

 

[Fausto]

Honestly, I really don't care. I just want them to get it over with so they'll both quit taking out full-page propaganda ads in the paper every day. Like we Atlantans actually have a say in the matter.

Fausto

 

[NicColt]

hehe.... I work there.

Just got an email saying that they can cut upto 55,000 jobs, there goes my job.

 

[JameSF]

I'm against it. Why? It's going to be worse for consumers. There will be fewer competitors and we'll all end up paying higher prices.

 

[Russ]

<< It's going to be worse for consumers. There will be fewer competitors and we'll all end up paying higher prices. >>



In most industries, that argument would have merit. In PCs, it doesn't. There are literally thousands of builders. An HP/Compaq merger will have no impact on prices to the end user.

That said, I voted against. I simply don't think this merger makes sense synergistically. The two cultures are radically different, and the products lines have too much crossover.



<< Just got an email saying that they can cut upto 55,000 jobs, there goes my job. >>



Nic,

I thought it was 15,000?

BTW, it looks like they'll be checking "chads" on this one.

Russ, NCNE

 

[ElFenix]

<< If they merge then there will be two decently strong companies, Dell and HP/Compaq >>

you can't assume that a merged compaq and hp will be a stronger company than the pieces it was made from. hell, compaq is a crappy company right now because they bought a company with a good outlook in the server market and a global support network. after compq bought DEC compaq didn't get any better, instead they got worse because they couldn't figure out what to do with all the stuff they got. so instead of leveraging alpha and other techs and gaining server share, they stuck their thumbs in their arses, put intel in charge of alpha, effectively killing it, and started to choke on the rest of it.

 

[sharkeeper]

The bigger they are, the harder they fall.

Cheers!

 

[b0mbrman]

For! w00t!

 

[CedarTeeth135]

I don't really care.

It's not like I ever buy anything from them.

 

[NicColt]

>I thought it was 15,000?

yea to start and upto 55,000 but I won't go more into it.

 

[Electrode]

We don't need another megacorporation. I vote against.

 

[Rallispec]

wow.. 20 - 20... tight poll

i voted for it, i think it will help the consumer.

 

[Fatdog]

Yeah, the 15,000 is official, the 55,000 is still rumor. Either way, a lot of people are running scared right now, our group included.

:disgust:

 

[NicColt]

The fact is that customers are demanding industry standard technologies for low-cost enterprise solutions, and the services that support them. Customers are accelerating the deployment of Windows and Linux in their businesses at an unprecedented rate and look for IT companies who can make them work together. In the future they will choose fewer and more strategic partners and expect them to be able to put all the technology pieces together for them. The value that HP/Compaq will deliver to customers is based on three fundamental principles: reduced complexity, increased flexibility and a faster return on investment.

When you have two companies always fighting each other to accomplish the same goals it just makes no sense. With this merger, it will create a mega IT company able to deliver on these three fundamental principles and perhaps better than Dell and IBM combined. I'm not saying that it will be perfect from the start but a HP/Compaq team will be more ready to deliver low-cost and value on enterprise solutions than any other in the business. That's just my opinion.

 

[AGodspeed]

From a profits standpoint, I'm for the HP-CPQ merger. Here's why:

1. HP's imaging and printer business are clearly their strong points, and I don't see the CPQ merger affecting that part of HP's portfolio.

2. HP is the #4 server provider in the world, with 12.8% according to Gartner Group. CPQ is the #3 server provider in the world with 13.9% (IBM is #1 and Sun is #2 with 29% and 15.4% respectively). HP-CPQ would clearly be a formidable force in the very profitable server market (Sever market share numbers.

3. According to Dataquest, CPQ is #2 in PC sales worldwide with 11.1% (Dell has 13.3% worldwide) while HP is #3 worldwide with 7.1%. HP-CPQ would also be a formidable force in the PC market (PC market share numbers).

4. Layoffs will save HP-CPQ a hefty sum of money yearly for the foreseeable future.

From the worker's standpoint, this merger, for lack of a better word, sucks. Although Fiorina has mentioned several times before that roughly the same amount of job cuts are going to be implemented whether the merger goes through or not (15,000 job cuts according to Fiorina). But still, I have a feeling this merger is also partly being used to cut more jobs (could be wrong though).

 

[NicColt]

It's official

Compaq shareholders voted overwhelmingly on Wednesday to approve our proposed merger with HP - by a margin of 9-1.

 

[PsychoAndy]

got a link? yesterday's USA today said that it can take up to 9 weeks to tally up the votes since voting just closed this week

 

[pcmodem]

Yo,
I could write a discource of scathing, searing remarks offering a wealth of information regarding this merger... but the bottom line: it just doesn't matter. It's over, one way or another. An academic point.

Best wishes to one and all for the future.
-PCM

 

[Russ]

<< yesterday's USA today said that it can take up to 9 weeks to tally up the votes since voting just closed this week >>



That's in reference to the HP proxies. He's referring to the Compaq vote.

Russ, NCNE

 

[NicColt]

>got a link?

hehe, it comes in the form of an email from.... Michael

 

[heartsurgeon]

i own plenty of hp stock, and now its gonna go down more..

carly fiorina or what ever her name needs to go pack'n..

i don't even know who the head of HP was before her (never even heard the dude's name!) - but he built the stock price up up up.

but hollywood Carly has driven the stock price down down down..(don't forget, she gets a 60 mill bonus if the merger goes through - even though the stock price is expected to go down even more over the next year due to "aquisition cost" and time lag in "realizing efficiencies of scale")

this is gonna remaind us all of the mercedes - chrysler merger.. one year later mercedeschrysler corp was worth LESS than mercedes ALONE before the merger.

oh my head hurts - this is gonna delay my plans for early retirement even more...