Teamwork isn't something you would expect in the competitive, money-making game of technology manufacturing. However, that's what Xerox seemed interested in with their acquisition offer of HP Inc. earlier this year. Here's everything you need to know about the offer, the merger, and what this means for the tech world.
Company mergers are nothing new, even in the case of giant companies like Xerox and HP. Sometimes it simply makes financial sense for two similar companies to eliminate competition, pool their resources, and operate under one name--mainly if that one name is more powerful and more publicly popular. It's a move that has proven beneficial for companies across the board, from tech to entertainment.
However, this is not your average buyout scenario.
First, let's take a look at the players:
At a whopping 113 years old, Xerox is hardly a newcomer to the technology game. While many analysts insist that they've declined in a market full of competitors (and full of uncertainty for the future), Xerox is still going strong with impressive new machines and services.
The younger of the two companies, HP has had an interesting history--especially recently, having separated into two separate businesses. Hewlett Packard Enterprises focuses its efforts on corporate data, while HP Inc. remains in the hardware game. However, despite optimistic projections, the journey was anything but easy; thousands of employees were laid off, sales declined in the printing sector, and CEO fluctuations made things complicated.
The (potential) merger
An HP-Xerox merger would send shock-waves through the office tech industry. However, that isn't what happened--at least not yet.
HP is worth about three times as much as Xerox--which is why, perhaps unsurprisingly, HP turned down the $33.5 billion offer. However, HP also hasn't completely shut down negotiations, which means a merger could still be possible down the line.
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