Report: HP Considered Spinning Off PC And Printing Business As Part of EMC Discussions

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Hewlett-Packard considered a spin-off of its $56 billion PC and printing business as part of merger discussions with EMC, according to a CNBC video report.

CNBC reported that the discussions between HP and EMC, which included a potential HP PC and printing business spin-off, are no longer ongoing. The financial cable news network reported that the discussions broke down with regard to the price of the deal.

[Related: Partners Would Welcome EMC Deal With HP Or Dell]

HP and EMC would not comment on the reports of the potential merger discussions or whether HP had considered spinning off its PC and printing business.

The Wall Street Journal first reported that EMC, under pressure from an activist investor and facing the potential retirement of CEO Joe Tucci, had held merger and acquisition discussions with both HP and Dell.

The CEO for a large HP enterprise partner, who did not want to be identified, said if an HP EMC deal did come to fruition and HP spun off the PC and printing business it would not negatively impact his business.

"HP internally treats its enterprise business and its PC and printing businesses as two separate groups in the field," said the CEO. "If they did spin it off, it wouldn’t affect me. PCs and printers are not a big business for us."

The CEO, who oversees a large HP and EMC business, said he would welcome a deal given that it would result in more muscle under a single vendor partner. "It would be easier for us as an HP and an EMC partner," he said.

Another CEO for an HP enterprise partner, who did not want to be identified, said he sees a potential EMC HP deal as a big opportunity for the channel. "Where is change and transition, there is opportunity," he said. "Where there is chaos, there is lots of opportunity."

Several HP partners said they had heard that a potential HP-EMC deal would have included a spin-off of certain parts of the business.

NEXT: HP Enterprise Partners React

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