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HP Seals the Deal, Buys EDS For $14B

Posted by timothy on from the the-same-only-different dept.

netbuzz writes "Following yesterday's spate of heated rumors, the announcement comes this morning that HP has completed a deal to buy EDS for just under $14 billion. The acquisition has been approved by the boards of both companies, according to HP. EDS CEO Ron Rittenmeyer has issued an e-mail to his employees promising that the company brand will continue and, "We are — and will remain — EDS."

6 of 214 comments (clear)

  1. Heh... by leonbev · · Score: 5, Insightful

    I wonder if Digital's and Compaq's CEO's sent out a similar e-mail when they got bought out by HP :)

    Look at the bright point, guys... at least you didn't get bought out by IBM. They would have completely turned the business on it's head in a manner of months!

    1. Re:Heh... by spookymonster · · Score: 4, Insightful

      If your biggest issue is the loss of a few perks, sounds like the cost-cutting was targeted perfectly.

      Now if you'd complained about something that actually impacted your job performance (excessive micromanagement, armed guards outside the stationary closets, etc.), I might've felt some sympathy....

      --
      - Despite popular opinion, I am not perfect.
    2. Re:Heh... by spideysense · · Score: 5, Insightful

      Yeah because I'm sure the few hundred dollars they spent on coke and sporks in a year cut REAL deep into the $9.6billion profit from last year. Treating people like their actually human and throwing them a few tiny perks here and there goes a long way.

  2. Yay! by Anonymous Coward · · Score: 5, Insightful

    Yay! An alternative to IBM Global Services from the maker of some really good servers. Too bad it's EDS, well at least it's not Accenture!

    Go Ross Perot!

  3. Re:The Deal will by SimonGhent · · Score: 5, Insightful

    EDS is an anti-labor, low pay sweatshop.


    EDS is an IT services company, what else would it be?
    --
    simon
  4. Re:So long DELL? by UnknowingFool · · Score: 4, Insightful

    It used to be that Dell sold decent computers for decent prices. They grew because they were cheaper than HP or IBM and used more commodity parts than Compaq. These days parts are getting cheaper and cheaper, and the desktop isn't as profitable due to really low margins. IBM foresaw that and sold off their PC business. That coupled with the fact that most PCs built in the last 5 years are good enough for most consumers who are not gaming so people don't need to replace their PCs anytime soon. Also, Dell has, for better or worse, tied their success to Windows. Vista now constitutes a significant amount of the cost of new PC as hardware prices drop. Even though Dell offers XP on new machines, they've already paid for the more expensive Vista (which includes downgrade rights).

    It's ironic that Dell and Apple have switched places from 10 years ago where Apple was in trouble and Dell was riding high. Apple computers are price competitive if you compare them feature for feature; it's that Apple, for most part, focuses their efforts on higher end models and laptops which have better margins and avoided the pricing wars on the low end.

    For Dell to remain, they have take some risks. I won't suggest that they sell off all the assets and give the money back to the shareholders that Dell suggested to Apple ten years ago.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.