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Is Oracle Considering Buying HP?

There's an interesting article over at NYPost.com which brings up another potential suitor for HP now that the market capitalisation of the company has fallen to around $51 billion.

While we still believe that Apple could be a better match for an acquisition of HP, Josh Kosman says that Oracle might be in the best position to takeover a vulnerable Hewlett Packard (opens in new tab).

Shares of HP have recovered by around four per cent at the time of writing but the company is still reeling from Friday's debacle that saw the company's stock fall by more than 20 per cent.

And even then, HP shares are cheap compared to near $50 (or twice the current price) that it commanded earlier this year and with former HP CEO Mark Hurd now on Larry Ellison's team, the next nine months are likely to be extremely tense for HP.

Should Oracle want to buy HP however, it could (and would) have to look for financing as it doesn't have the financial clout to go for it alone even with a market capitalisation of $127 billion.

Selling the PC division of HP could help finance the sale as would spinning off the Printers and Imaging division, one which has low appeal for Oracle.

The leitmotiv behind a potential HP acquisition by Oracle is explained by a Banker who says that Oracle will be in a better position to challenge archrival IBM with a combined marcap approaching that of Big Blue.

Désiré Athow
Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.