Hewlett-Packard deal will hurt component suppliers

Article Abstract:

Industry analysts say that Hewlett-Packard's planned acquisition of Compaq Computer Corp. bodes ill for makers of disk drives, semiconductors and other parts used in personal computers. The combined firm may reduce inventory and product lines, depressing demand for chips in a market that is still struggling to recover. Makers of disk drives, chipsets and memory chips are likely to feel price pressure from the combined company. However, contract manufacturers are unlikely to feel a negative impact from the merger because any increase in clout gained through the merger will be offset by a greater reliance on contract manufacturers.

Semiconductors and related devices, Semiconductor Devices, Semiconductor and Related Device Manufacturing, Electronic components, not elsewhere classified, Other Electronic Component Manufacturing, Electronic Components NEC, Analysis, Semiconductor industry, Electronic components, Intel Corp., INTC, Forecasts and trends, Company acquisition/merger, Acquisitions and mergers, Electronic components industry, SCI Systems Inc., SCIS, Advanced Micro Devices Inc., AMD

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H-P to spin off its measurement operations; sharper focus on computing will emerge

Article Abstract:

The original Hewlett-Packard Co. that is now about 16% of the total current-day firm will be spun off, an emotional decision for any company veterans to accept. The new measurement products and systems spinoff doesn't have a new name as yet; its current leader, Edward Barnholt, will remain its head. The remaining computer/printer segment is expected to become a much more focused and effective competitor against Dell and Sun.

Comment:

Focusing on its computer business should re-energize growth

Organizational history, Instrument industry (Equipment), Management, Testing and measuring equipment industry, Abstract, Gateways (Computer networks), Gateways (Network hardware)

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CMGI discusses buying Compaq assets; deal, for up to $3 billion, would cover Alta Vista, other Web properties

Article Abstract:

CMGI Inc. and Compaq Computer Corp. are in discussions regarding the sale of AltaVista Co., Shopping.com and Zip2 Corp. to CMGI. The sale of Compaq's Internet-based assets would bolster CMGI's efforts to compete against Yahoo! and Lycos Inc. and allow Compaq to focus on improving its computer and computer service sales and financial losses. CMGI is also believed to be interested in acquiring Lycos, though neither company was willing to comment on the rumor.

Telegraph & other communications, Investment Offices, Investment Companies, Open-End Investment Funds, Online services, Internet services, Online information services, AltaVista Co., Lycos Inc., CMGI Inc., CMGI, LCOS, Online information service, Shopping.com Inc., Zip2 Corp.

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