An HPQ insider's insight

Former HP CEO Leo Apotheker, who authorized the acquisition of Autonomy, spoke up after the deal was blamed ill-fated. "No single CEO is ever able to make a decision on a major acquisition in isolation, particularly at a company as a large as HP --- and certainly not without the full support of the chairman of the board," he said in an email to Bloomberg. The chairman of the board is Ray Lane, still the chairman of the board. HP bought Autonomy for $8.8B when Apotheker was in charge.

Current HPQ CEO Meg Whitman blamed that Autonomy lied their financials to HPQ and requested recoup money as much as possible, even though Whitman also voted for the deal. However, Apotheker's tone is critically important and sharply contrast to Autonomy's founder, who denied any wrongdoings outright. The key message is that the deal was not single-handed approved by Apotheker, even though it is a lemon trade. In a sense, Apotheker admitted that the deal was not an ideal acquisition but he isn't the only one to be blamed.


HPQ has been consistently giving impression that it wasted investor's money.  The stock has lost 42% in 2012. Also, HPQ's board room scandal, leaked information, and slow to respond are infamous. For example, the current rumor that Ichan is accumulating HPQ may be coming from HPQ higher up and traders.

Long term speaking, HPQ has numerous issues to overcome. Many have questioned its survival in the future. Apotheker's comment reveals that there were disagreements at the highest level unresolved. Without cleaning up the house completely, the recovery path is hard and bumpy. On one hand, HPQ, after years dominance in technology, is a diversified portfolio. On the other hand, it has a long way to go. Therefore, HPQ's value is in its past, not the future. Thus, bets on its future are risky.