Is HP Planning to Sell Its Printing Business?

According to CRN, a CNBC video reported that merger discussions between Hewlett-Packard and data-storage giant EMC Corp recently broke down due to price. HP had considered selling its $56 billion printing business as part of the deal.

On September 21, The Wall Street Journal first revealed that pressed by a shareholder activist and faced with the expected retirement of Joe Tucci, its longtime CEO, EMC was considering options to merge with HP. The two companies have been negotiating for about one year. But the talks broke down a few weeks ago over financial terms and fears that EMC and HP shareholders would reject the deal, according to people familiar with the matter. Moreover, it isn’t clear whether the talks could be revived, said the statement.

The WSJ noted that the deal EMC and HP discussed would have been a blockbuster, in part given that the two companies have a combined market value of nearly $130 billion. The potential merger would create an approximately $2 trillion-a-year business that markets hardware, software, and technology services. Plus, Mr. Tucci initially would have been Chairman and HP’s Meg Whitman would have remained CEO of the combined enterprise.

In addition, the WSJ stated that EMC recently talked with Dell, people familiar with the matter said. However, no further details about the talks were disclosed.