When it comes to any merger, you often can’t trust the reason the firms are merging, particularly if financial rather than operational managers are driving the process. When it comes to hostile takeovers, you can bet you are being misled, because the rhetoric will address synergy and the power of the two firms together, but the folks driving the effort know the more likely goal is to destroy the acquired company.

Carl Icahn, who is one of the most feared corporate raiders in the world — possibly the most feared — is behind this one. He is known to be the death of firms he touches, while he almost always benefits personally to a high degree.

I’ll share some observations on Xerox’s attempt at a hostile merger with HP Inc., which I expect to fail, and then close with my product of the week: an interesting gaming laptop from HP.

Hostile Mergers: A Game of Misdirection

One exception to the usual pattern was Oracle’s hostile acquisition of Peoplesoft. In that case, Oracle was up front about the fact that it wanted to shut down and absorb Peoplesoft, which was the result. Given the goal was to shut down Peoplesoft, Oracle got rid of a painful competitor and was able to acquire most of the customers, because migrating off Peoplesoft wasn’t easy and Oracle executed sharply. This isn’t to say the Peoplesoft customers were happy. They mostly weren’t, but Oracle did do what it said it would do.

Generally, hostile mergers are about either destroying a competitor (as was the case with Peoplesoft) or acquiring key technology that the entity backing the merger wants to access. For instance, when Broadcom attempted a hostile acquisition of Qualcomm, it was believed to be backed by Apple, which appeared to want to eliminate iPhone competitors and gain control of Qualcomm’s intellectual property, potentially returning it to market leadership.

The U.S. government blocked the move as a matter of national security, likely out of concern that it would have handed 5G leadership to Huawei and China. That alone could have shifted the balance of power from the U.S. to China.

Strangely, Broadcom
went on to acquire CA, which suggests that it had another reason for a fast merger — the most likely being that it didn’t want its financials to settle. One way to hide poor financial performance is to create lots of noise, and mergers create lots of noise.

The irony here is CA was a company that also was built by rapid acquisitions and treating customers badly. Even the rumor CA was going to acquire a firm would lead to that firm’s customers running for the hills. At least that merger didn’t appear to be hostile.

Xerox’s Hidden Agenda

What brought up the latest speculation is the “A” list directors
Xerox brought forward last week, which made it look like it wanted to replace HP’s diverse and industry-focused board with one heavy in CEOs and seeming superstars.

With an acquisition, particularly a hostile acquisition, the board that remains when the acquisition is over generally is the board the acquiring company started with — or, in this case, a board
heavy with Carl Icahn employees and arguably controlled by him, even though his name doesn’t show up either on the Xerox board or the proposed board.

Now, if industry experts ran Xerox, as opposed to financial types, you might assume that the goal might be to eliminate a competitor. However, HP is far broader than Xerox, suggesting that even at the current price, Xerox would be overpaying massively for the benefit it likely would get. Financial types don’t overpay for anything — it isn’t in their nature. So, this effort seems to be focused on getting access to a valuable asset, or assets, that most investors don’t realize HP has.

Given the level of effort, the asset — or assets — must be significant, and I think I know what one or both may be.

HP’s Hidden Jewels

HP has two hidden jewels that are significantly undervalued: its 3D printing technology and its print head technology.

The first is beginning to play in manufacturing, particularly automotive, and has the potential to massively change manufacturing on a global scale. They not only has created technologies to handle plastics, and plastics in color, but also
moved recently to metals and has volume and cost advantages.

It has the potential to redefine manufacturing and is on a path that eventually could turn a factory into what effectively is a large printer. This is big, but it still pales in the face of the second technology.

HP’s print head technology has been adapted to several industries and falls under the general category of
microfluidics. Now, applied, this could do things like revolutionize the way car dealerships fix chips in expensive cars (it can cost tens of thousands of dollars to repair a paint chip in Bugatti, for instance), or it could transform healthcare.

This last has massive potential if you understand that blended medications — or, more accurately, the steep prices associated with them — are a big contributor to excessive medical costs. Further, it’s currently not easy to match medications with each patient’s unique body.

With the proper sensors, HP’s microfluidics technology could do both. It could blend low-cost medications in place, potentially at a fraction of the cost of preblending them, and it could administer exactly the right amount of medicine for a patient’s unique requirements. That could remove much of the cost of the medications — think chemotherapy for instance — and virtually eliminate overdoses and massively reduce addiction.

This isn’t potentially a million dollar or even billion dollar technology — it is a trillion dollar technology. Once applied, it has the potential to make HP the most valuable company in the world. Given this is already in lab use, in production, this isn’t as far out as you might think.

Wrapping Up: Misdirection

When a company controlled by a corporate raider like Carl Ichan takes an interest in something, it means there is a part of that something he knows is massively undervalued, because the cost of his effort will be extreme, and he is not known for losing money.

Figuring out what he really is after is critical to understanding his strategy, particularly if you are already an investor, because he likely is trying to take a gain that you otherwise might get and make it his own.

He knows how to monetize and sell the most valuable technologies, and he isn’t exactly known for leaving much behind, which is why his skill set is known as “corporate raider.” Those of us who recall what he did to TWA are hoping he doesn’t do the same thing to HP.

I’d almost bet the hidden buyer he has in the wings is connected to China, as it has both the money and the interest in making sure these revolutionary technologies migrate — along with jobs and revenue — out of the U.S.

Rob Enderle's Product of the Week

Since I’m focusing on HP this week, I thought I’d pick one of the more interesting notebooks I saw at CES. It has a second smaller display above the keyboard, and the touchpad is relocated to the far right so it more easily can be used as you would use a mouse while gaming. It is rigged with a dongle that allows it to play Xbox games from the Microsoft cloud.

HP Omen X 2S RTX Studio Laptop

HP Omen X 2S RTX Studio Laptop


While not a cheap date at US$1,999, it provides the combination of full-on desktop performance with a usage model that most serious gamers who need a portable solution would appreciate. I didn’t get a chance to do much more than get a feel for the ergonomics — which are good — but it has an impressive industrial design.

While not lightweight by any measure, it is still light enough to carry in a backpack and for those who want a truly powerful gaming system to take with them, this might be the ideal choice. Be aware, though, that it is a tad too large to play easily in an airplane seat.

It has the new 2070 Nvidia RTX ray tracing card and an Intel 9th generation processor with six cores, as well as a 1-TB SSD drive, so it likely will outperform your gaming desktop machine. It looks awesome. The second screen is handy if you are playing a game and also watching your email, messaging, or looking for an alert — or if your boss, teacher or spouse is sneaking up on you.

Its performance means it also is good for photo or video editing, and it would be amazing for those who want the latest automatic Photoshop features showcased in Intel and Adobe’s CES demonstrations to work properly.

While I chose this laptop partially because of my interest in HP’s hidden gems this week, another part of HP that stands out is its PC unit, which is one of the most innovative and balanced units in the segment.

Its new
Omen X2S RTX Studio 15 Laptop is one of the most interesting products in the company’s line, so it is my product of the week.

The opinions expressed in this article are those of the author and do not necessarily reflect the views of ECT News Network.


Rob Enderle has been an ECT News Network columnist since 2003. His areas of interest include AI, autonomous driving, drones, personal technology, emerging technology, regulation, litigation, M&E, and technology in politics. He has an MBA in human resources, marketing and computer science. He is also a certified management accountant. Enderle currently is president and principal analyst of the
Enderle Group, a consultancy that serves the technology industry. He formerly served as a senior research fellow at Giga Information Group and Forrester.
Email Rob.



Source link

337 COMMENTS

  1. With havin so much content do you ever run into any problems of plagorism or copyright infringement? My website has a lot of unique content I’ve either created myself or outsourced but it looks like a lot of it is popping it up all over the web without my permission. Do you know any methods to help protect against content from being stolen? I’d definitely appreciate it.|

  2. Heya excellent blog! Does running a blog like this take a lot of work? I’ve absolutely no understanding of coding however I had been hoping to start my own blog in the near future. Anyway, should you have any ideas or techniques for new blog owners please share. I understand this is off subject but I simply wanted to ask. Thanks a lot!|

  3. Good day I am so delighted I found your blog, I really found you by error, while I was browsing on Yahoo for something else, Anyhow I am here now and would just like to say thanks a lot for a fantastic post and a all round enjoyable blog (I also love the theme/design), I don’t have time to read through it all at the minute but I have book-marked it and also included your RSS feeds, so when I have time I will be back to read much more, Please do keep up the excellent work.|

  4. I blog quite often and I really thank you for your content. Your article has really peaked my interest. I’m going to take a note of your site and keep checking for new information about once a week. I subscribed to your RSS feed too.|

  5. Hi, i feel that i saw you visited my weblog thus i got here to go back the choose?.I am trying to find issues to improve my web site!I assume its good enough to make use of some of your ideas!!|

  6. Hello there! Would you mind if I share your blog with my twitter group? There’s a lot of people that I think would really enjoy your content. Please let me know. Many thanks|

  7. Howdy, I do think your site may be having browser compatibility problems. When I take a look at your site in Safari, it looks fine however, when opening in I.E., it’s got some overlapping issues. I merely wanted to give you a quick heads up! Besides that, great blog!|

  8. An intriguing discussion is definitely worth comment. I believe that you should publish more about this issue, it might not be a taboo matter but typically folks don’t discuss such issues. To the next! Cheers!!|

  9. This is very interesting, You’re a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your excellent post. Also, I’ve shared your web site in my social networks!|

  10. I do not even know how I ended up here, but I thought this post was great. I don’t know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!|

  11. You actually make it appear really easy with your presentation however I find this matter to be actually one thing that I believe I’d by no means understand. It kind of feels too complex and extremely huge for me. I am taking a look forward for your subsequent publish, I’ll attempt to get the hold of it!|

  12. With havin so much content and articles do you ever run into any problems of plagorism or copyright violation? My site has a lot of unique content I’ve either written myself or outsourced but it seems a lot of it is popping it up all over the internet without my permission. Do you know any solutions to help stop content from being stolen? I’d certainly appreciate it.|

  13. Magnificent goods from you, man. I have understand your stuff previous to and you’re just extremely wonderful. I actually like what you have acquired here, certainly like what you’re stating and the way in which you say it. You make it entertaining and you still care for to keep it sensible. I cant wait to read far more from you. This is actually a wonderful site.|

  14. My developer is trying to convince me to move to .net from PHP. I have always disliked the idea because of the expenses. But he’s tryiong none the less. I’ve been using WordPress on numerous websites for about a year and am concerned about switching to another platform. I have heard excellent things about blogengine.net. Is there a way I can transfer all my wordpress content into it? Any kind of help would be really appreciated!|

  15. Good day very cool blog!! Man .. Excellent .. Superb .. I will bookmark your site and take the feeds also? I’m satisfied to find numerous useful info here within the put up, we’d like develop more techniques on this regard, thanks for sharing. . . . . .|

  16. Hiya! Quick question that’s entirely off topic. Do you know how to make your site mobile friendly? My blog looks weird when browsing from my apple iphone. I’m trying to find a theme or plugin that might be able to fix this issue. If you have any suggestions, please share. Many thanks!|

  17. May I simply just say what a comfort to uncover someone who really understands what they are talking about over the internet. You definitely know how to bring an issue to light and make it important. More and more people must check this out and understand this side of the story. I was surprised you are not more popular because you surely possess the gift.|

  18. Hey there just wanted to give you a quick heads up. The text in your post seem to be running off the screen in Internet explorer. I’m not sure if this is a formatting issue or something to do with browser compatibility but I thought I’d post to let you know. The design and style look great though! Hope you get the issue resolved soon. Kudos|

  19. Unquestionably consider that that you stated. Your favorite justification seemed to be on the net the simplest thing to understand of. I say to you, I definitely get irked while folks consider worries that they plainly do not recognise about. You managed to hit the nail upon the top and outlined out the entire thing without having side-effects , other folks could take a signal. Will likely be back to get more. Thank you|

  20. I just like the valuable information you supply in your articles. I will bookmark your weblog and test again here regularly. I’m relatively certain I will learn lots of new stuff proper right here! Good luck for the following!|

  21. Wow, incredible blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your site is excellent, let alone the content!|

  22. A person essentially lend a hand to make critically posts I’d state. This is the first time I frequented your web page and so far? I surprised with the research you made to make this particular publish incredible. Fantastic task!|

  23. Thanks for another informative blog. Where else may I get that type of info written in such a perfect method? I’ve a mission that I’m just now running on, and I have been on the glance out for such info.|

  24. When someone writes an post he/she keeps the idea of a user in his/her brain that how a user can understand it. So that’s why this article is outstdanding. Thanks!|

  25. Please let me know if you’re looking for a article writer for your site. You have some really good articles and I think I would be a good asset. If you ever want to take some of the load off, I’d love to write some articles for your blog in exchange for a link back to mine. Please blast me an email if interested. Kudos!|

  26. I’ve been surfing online more than 3 hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the net will be much more useful than ever before.|

  27. Thanks for your marvelous posting! I actually enjoyed reading it, you happen to be a great author. I will ensure that I bookmark your blog and may come back later in life. I want to encourage that you continue your great job, have a nice holiday weekend!|

  28. I am really inspired together with your writing skills as smartly as with the layout to your blog. Is that this a paid theme or did you modify it your self? Anyway stay up the excellent high quality writing, it is rare to look a nice weblog like this one today..|

  29. Good post. I learn something totally new and challenging on blogs I stumbleupon everyday. It’s always exciting to read content from other writers and use something from their websites. |

  30. Hey there! This is my first visit to your blog! We are a team of volunteers and starting a new initiative in a community in the same niche. Your blog provided us beneficial information to work on. You have done a marvellous job!|

  31. Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You obviously know what youre talking about, why throw away your intelligence on just posting videos to your weblog when you could be giving us something enlightening to read?|

  32. When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove people from that service? Thank you!|

  33. This is very interesting, You’re a very skilled blogger. I have joined your rss feed and look forward to seeking more of your fantastic post. Also, I’ve shared your site in my social networks!|

  34. Thanks for any other informative web site. Where else may just I am getting that kind of info written in such an ideal way? I’ve a undertaking that I’m just now running on, and I have been on the glance out for such information.|

  35. Undeniably believe that which you said. Your favorite justification appeared to be on the internet the easiest thing to be aware of. I say to you, I definitely get annoyed while people consider worries that they just don’t know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side-effects , people can take a signal. Will probably be back to get more. Thanks|

  36. I really like your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz reply as I’m looking to create my own blog and would like to know where u got this from. appreciate it|

  37. Hey! Someone in my Myspace group shared this website with us so I came to take a look. I’m definitely loving the information. I’m book-marking and will be tweeting this to my followers! Wonderful blog and fantastic design and style.|

  38. Hello there! I know this is somewhat off topic but
    I was wondering if you knew where I could locate a captcha plugin for my
    comment form? I’m using the same blog platform as
    yours and I’m having difficulty finding one?
    Thanks a lot!

  39. Hello There. I discovered your weblog the usage of msn. That is a really neatly written article. I will be sure to bookmark it and return to learn more of your useful information. Thank you for the post. I will certainly return.|

  40. Undeniably believe that which you stated. Your favorite reason seemed to be on the web the simplest thing to be aware of. I say to you, I definitely get annoyed while people consider worries that they plainly don’t know about. You managed to hit the nail upon the top and defined out the whole thing without having side-effects , people can take a signal. Will likely be back to get more. Thanks|

  41. Greetings, I believe your website may be having browser compatibility issues.
    When I look at your site in Safari, it looks fine however, if opening in I.E., it’s got some overlapping
    issues. I merely wanted to provide you with a quick heads up!
    Other than that, wonderful blog!

  42. Greetings, I do think your web site may be having internet browser compatibility problems. When I take a look at your website in Safari, it looks fine however, if opening in IE, it’s got some overlapping issues. I merely wanted to give you a quick heads up! Besides that, great blog!|

  43. Howdy! Quick question that’s totally off topic. Do you know how to make your site mobile friendly? My web site looks weird when browsing from my iphone 4. I’m trying to find a theme or plugin that might be able to resolve this problem. If you have any recommendations, please share. With thanks!|

  44. Howdy very cool website!! Guy .. Excellent .. Wonderful .. I will bookmark your blog and take the feeds also? I’m happy to seek out numerous helpful information here in the post, we need develop more techniques on this regard, thanks for sharing. . . . . .|

  45. Cbd oil that works 2020
    I was wondering if you ever thought of changing the layout of your blog?
    Its very well written; I love what youve got to say.
    But maybe you could a little more in the way of content so people
    could connect with it better. Youve got an awful lot of text for only having one or 2 pictures.
    Maybe you could space it out better? best cbd oil for pain http://bit.ly/3drY6lE
    cbd oil that works 2020 http://bit.ly/3drY6lE

  46. Friends contact him Terrance Cage and he enjoys it. What me and my family associates love is to engage in rock and roll and now I have time to just get on new issues. She is at the second a credit background authoriser but soon her husband and her will start their possess company. I’ve usually liked residing in New Jersey.

  47. Wonderful goods from you, man. I have keep in mind your stuff prior to and you’re simply extremely wonderful. I really like what you have got right here, really like what you’re saying and the way in which by which you assert it. You’re making it entertaining and you still care for to stay it wise. I can not wait to read much more from you. That is really a tremendous web site.|

  48. What’s Going down i’m new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I hope to give a contribution & help other customers like its aided me. Good job.|

  49. Greetings from Florida! I’m bored to tears at work so I decided to browse your website on my iphone during lunch break. I enjoy the information you provide here and can’t wait to take a look when I get home. I’m shocked at how fast your blog loaded on my phone .. I’m not even using WIFI, just 3G .. Anyhow, superb site!|

  50. Having read this I thought it was really informative. I appreciate you spending some time and energy to put this information together. I once again find myself spending a significant amount of time both reading and leaving comments. But so what, it was still worthwhile!|

  51. Yesterday, while I was at work, my cousin stole my apple ipad and tested to see if it can survive a 30 foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is totally off topic but I had to share it with someone!|

  52. Today, I went to the beachfront with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is completely off topic but I had to tell someone!|

  53. I blog quite often and I seriously appreciate your content. This article has truly peaked my interest. I will book mark your website and keep checking for new details about once a week. I subscribed to your Feed as well.|

  54. I have been surfing online greater than three hours today, but I never found any interesting article like yours. It is beautiful value sufficient for me. In my view, if all website owners and bloggers made good content as you probably did, the web will probably be much more helpful than ever before.|

  55. Great – I should certainly pronounce, impressed with your website. I had no trouble navigating through all tabs as well as related info ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, web site theme . a tones way for your customer to communicate. Nice task.

  56. Cristen is the title my mother and father gave me and I love it. Years in the earlier we moved to Louisiana. To participate in hockey is one thing my husband doesn’t truly like but I do. My day work is an office clerk and it’s a matter I actually delight in.

  57. Thanks for every other wonderful post. The place else could anyone get that type of info in such an ideal manner of writing? I’ve a presentation next week, and I’m at the search for such info.

  58. I enjoy you because of all your valuable hard work on this blog. Kim really loves making time for investigation and it’s easy to see why. All of us learn all of the powerful medium you offer priceless guides on this web site and inspire response from other individuals on this theme then our own simple princess is studying a lot. Take pleasure in the remaining portion of the year. You’re the one performing a good job.

  59. I do trust all of the ideas you’ve introduced in your post. They are very convincing and will definitely work. Still, the posts are too short for beginners. May just you please prolong them a little from subsequent time? Thanks for the post.

  60. Thank you for sharing superb informations. Your site is very cool. I am impressed by the details that you have on this website. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for more articles. You, my pal, ROCK! I found simply the information I already searched all over the place and simply could not come across. What a perfect web site.

  61. Hi, Neat post. There is an issue along with your web site in web explorer, would check this… IE still is the marketplace leader and a good section of folks will omit your fantastic writing because of this problem.

  62. I just like the helpful information you supply for your articles. I’ll bookmark your weblog and test again right here frequently. I’m fairly sure I’ll be told many new stuff proper right here! Best of luck for the following!

  63. I just wanted to compose a quick message so as to express gratitude to you for all the amazing advice you are showing at this site. My time-consuming internet search has at the end of the day been rewarded with reasonable suggestions to talk about with my neighbours. I would state that that most of us readers are really blessed to dwell in a fantastic place with many perfect people with good guidelines. I feel extremely happy to have encountered your entire webpage and look forward to many more fun moments reading here. Thank you once more for a lot of things.

  64. Excellent post. I used to be checking constantly this weblog and I’m impressed! Very useful info specially the final section 🙂 I take care of such information much. I was seeking this certain information for a long time. Thank you and good luck. |

  65. I have a domain that is redirecting it views to my main site. I want to build a wordpress site on that domain but i cant access my admin for wordpress because it just redirects me to my main site. I don’t want to take my domain off redirect until the wordpress site is done. So what do i do?. It is redirected thru my registrar. How would i login with my IP?.

  66. Does your site have a contact page? I’m having problems locating it but, I’d like to shoot you an email. I’ve got some ideas for your blog you might be interested in hearing. Either way, great site and I look forward to seeing it improve over time.|

  67. Hello! Someone in my Myspace group shared this site with us so I came to take a look. I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers! Superb blog and superb design and style.|

  68. Hi, I do think this is a great web site. I stumbledupon it 😉 I may revisit once again since I book-marked it. Money and freedom is the best way to change, may you be rich and continue to help other people.|

  69. Nice post. I learn something totally new and challenging on sites I stumbleupon every day. It will always be helpful to read articles from other writers and use a little something from other web sites. |

  70. Wonderful blog! Do you have any hints for aspiring writers? I’m planning to start my own blog soon but I’m a little lost on everything. Would you suggest starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m completely overwhelmed .. Any suggestions? Cheers!|

  71. Hi, I do believe this is an excellent site. I stumbledupon it 😉 I will return yet again since i have book-marked it. Money and freedom is the best way to change, may you be rich and continue to help other people.|

  72. It’s the best time to make some plans for the future and it’s time to be happy. I’ve read this post and if I could I wish to suggest you some interesting things or advice. Maybe you can write next articles referring to this article. I desire to read more things about it!|

  73. Does your blog have a contact page? I’m having trouble locating it but, I’d like to shoot you an e-mail. I’ve got some ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it expand over time.|

  74. Do you mind if I quote a few of your posts as long as I provide credit and sources back to your weblog? My blog is in the exact same area of interest as yours and my visitors would really benefit from some of the information you present here. Please let me know if this okay with you. Thanks!|

  75. Hi, I do think this is an excellent website. I stumbledupon it 😉 I’m going to revisit once again since I saved as a favorite it. Money and freedom is the greatest way to change, may you be rich and continue to help others.|

  76. great publish, very informative. I wonder why the opposite experts of this sector do not notice this. You should continue your writing. I’m confident, you have a huge readers’ base already!|

LEAVE A REPLY

Please enter your comment!
Please enter your name here