Hewlett-Packard Confirms Split Into 2 Companies

PALO ALTO (CBS SF) -- Palo Alto-based Hewlett-Packard confirmed Monday morning that it is splitting itself into two companies.

While one company will focus on its personal computer and printing business, the other on technology services— such as data storage, servers and software.

"Like most large companies, they are more valuable in components and the real question is whether the printing and imaging and PC divisions were showing synergy with the rest of the organization. And I guess executive management, according to the story, has determined that it does not," Rob Enderle, of the Enderle Group, told KCBS. "It provides almost instant, large increases in a company's evaluation."

Enderle said it's difficult to say whether the company will cut jobs over the move and the CEO Meg Whitman could be viewed as the hero for the company, if the split is successful.

The company said the PC and printer business will use the name HP Inc. The services business will take the name Hewlett-Packard Enterprise.