Xerox abandons $33 billion hostile takeover of HP

[Shawn Knight]

What just happened? Xerox this week said the global health crisis and resulting market turmoil caused by Covid-19 has created an environment that is no longer contributory to their efforts to acquire HP Inc. As such, Xerox is withdrawing its tender offer and is no longer seeking to nominate its own slate of directors to replace HP’s entire Board of Directors.

Xerox in announcing its decision said that while it was disappointing to take this step, they are prioritizing the health, safety and well-being of their employees, partners and stakeholders above all other considerations.

The company also used the opportunity to thank the Xerox and HP stockholders that supported them throughout the process, adding that there remains a compelling long-term financial and strategic benefit by combining the two companies.

HP issued the following statement on the matter:

We remain firmly committed to driving value for HP shareholders. HP is a strong company with market leading positions across Personal Systems, Print, and 3D Printing & Digital Manufacturing. We have a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future.

Our focus remains on addressing the needs of our ecosystem of stakeholders around the world, ensuring that we build on our strength and resiliency throughout this crisis and position the business for the opportunities ahead.

Xerox’s bid felt like a long shot from the get go, especially considering HP Inc.'s market cap was more than three times that of Xerox’s. Add in the uncertainty of today’s market and it’s probably best that cooler heads prevailed.

It's unclear if Xerox will revisit the takeover bid once the pandemic is in the rearview although considering how nasty things got up to this point, nothing would be surprising.

Masthead credit: Katerina Kalugina

Permalink to story.

https://www.techspot.com/news/84648-xerox-abandons-hostile-takeover-hp-due-covid-19.html

 

[QuantumPhysics]

The quality of Hewlett-Packard printers has gone down so ridiculously that I guess xerox actually made out well.


After the last Hewlett-Packard printer I Purchased turned out to be a paper thin, cheapo product I would imagine that Xerox and brother both make better products.

 

[Toju Mikie]

The quality of Hewlett-Packard printers has gone down so ridiculously that I guess xerox actually made out well.


After the last Hewlett-Packard printer I Purchased turned out to be a paper thin, cheapo product I would imagine that Xerox and brother both make better products.

Yep. And HP started region-locking their cartridges and jacking up cartridge prices.

 

[stewi0001]

Yep. And HP started region-locking their cartridges and jacking up cartridge prices.

This is why you either need to go laser-jet or ink-tank

 

[Uncle Al]

What a pity, the Xerox management style would have done a WORLD of good for HP and might even have returned them to their former glory of 35 years ago .....

 

[QuantumPhysics]

Yep. And HP started region-locking their cartridges and jacking up cartridge prices.

I think the next time I have to buy a printer I may just save the money and buy a Lexmark multifunction laser printer.

sure the toners are ridiculous in price but at least I know that the quality is decent.

 

[p51d007]

Xerox, eventually will either have to "build up" production, buy someone or be absorbed by someone. Their partnership with Fuji, is soon to end, and since they don't build their equipment in New York anymore, they will have no one to build their printer/copiers.
If you remember the "exploding" Samsung phones of a few years ago, Samsung was hurting for $$$$ to pay off the returns, lawsuits etc. At the same time, HP, was wanting to get into the larger copier market, A3 (Ledger size 11x17) copier/printer business but didn't want to spend the R&D/manufacturing to produce those types of machines. So, they bought the Samsung copier/printer division.
I've been in this business for almost 40 years. The larger and some smaller HP machines, are
nothing more than Samsung copier/printers with the HP software. The supplies, mechanics etc are exactly of the Samsung machines we use to work on, but now with the HP stamp on the front.
Heck, we even get some stock of Samsung machines, with HP logo's stamped over the Samsung logo on the box, and with new HP serial numbers.
Xerox is going to be hurting unless they find someone to build their machines, which might involve Fuji continuing to build them, but at a HIGHER cost.

 

[madboyv1]

I think the next time I have to buy a printer I may just save the money and buy a Lexmark multifunction laser printer.

sure the toners are ridiculous in price but at least I know that the quality is decent.

If you print even a moderate amount, be prepared to potentially spend some big money on imaging kit, fuser, and image transfer unit replacements. I have maintained / repaired a fair number of Lexmark Lasers over the years and it adds up very quick. HOWEVER... at least it can be done and I don't feel as bad since it is ever so slightly less e-waste doing so.

Unlike HP lasers that are not designed AT ALL for any kind of significant maintenance or repair, and the cost to do so is outrageous. I've had several M477 fusers give up the ghost in the last 3 months. It is absolutely miserable to pull them out, and even then they cost almost as much as a new printer to replace, so we ended up doing just that. For us, HPs are easier for the end user for both basic maintenance and actual use, but when things get ugly that's when I suffer XD.