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Dell Buyout Mocked By HP

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Dell Inc. (NASDAQ:DELL)’s buyout seems to be humorous to Hewlett-Packard Company (NYSE:HPQ). Dell officially announced its private buyout plan today. The $24 billion deal involves founder, chairman and CEO, Michael Dell and the private equity firm Silver Lake partners. Microsoft Corporation (NASDAQ:MSFT) is also helping it along.

Dell Buyout Mocked By HP

In response to Dell Inc. (NASDAQ:DELL)’s announcement today, Hewlett-Packard Company (NYSE:HPQ) released this statement: “Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers.”

Of course there’s no denying the fact that HP’s statement is true. However, as CNN Money points out, Hewlett-Packard Company (NYSE:HPQ) really shouldn’t have much to say on the subject because it’s going through a difficult transition of its own. Shares of HP have fallen 66 percent in the past three years. Leo Apotheker, the company’s previous CEO, was kicked out toward the end of 2011, but not before the company had to lower its financial outlook multiple times, sell off its webOS business just after purchasing it and make plans to sell off its PC business.

Meg Whitman took the helm just in time to save HP’s computer business, but the company has continued to struggle. HP’s disastrous takeover of Autonomy, which resulted in a $8.8 billion write-down, has created significant setbacks for the company’s ongoing “transition.”

Meanwhile, Dell Inc. (NASDAQ:DELL) and Hewlett-Packard have both been struggling to adapt, as the computer business changes. The two companies are essentially battling for scraps as the computer industry continues to morph. So, Hewlett-Packard would love to see customers turn to them instead of Dell. The company has a lot to gain if customers think Dell is defunct.

But the reality is that the game is not over for Dell. The company may be going private, but it isn’t going out of business any time soon.

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