Hewlett-Packard's plans to split into two companies is too little, too
late, technology investor Roger McNamee said Monday.
"They have all the agility of a bag of
cement," McNamee, co-founder of Elevation Partners, said on "Squawk Alley." "It seems to me they've been at least two, maybe three years behind every
Rival IBM, on the other
hand, divested PCs and servers
years ago on the realization these businesses
growth potential, McNamee said.(he's omitting the fact that IBM was 4th in a field of 3, losing money on PCs, when they divested; HP has been 1 or 2 for a decade, making fair $$)
"In fairness, I think HP has been
horribly managed for 20 years (so he indicts Lew Platt quite as much as Carly Fiorina, etc) and, you know, so
[CEO] Meg Whitman didn't inherit a great situation, but I don't think there's any evidence that she's
gotten control of it, that she has any idea what they ought to do next,"
he said. "I don't see any plan for either side of these things that's
going to make a difference to shareholders... the long-term outlook for both
sides of this business is terrible."
On the tape, McNamee assails the plan because
more execs will milk more money from the treasury. He should know, he got plenty from HP at a time that Palm's old boss, Todd Bradley, took home $27M to
run PCs for a year. for HP--a year that Hurd and three others milked $110M in salaries and perks from a company they stole blind.
Earlier, Hewlett-Packard surged after saying
it would split its hardware and services businesses from the personal-computer and printer business, forming two publicly traded companies.
"We think this is the best tactic to
continue this turnaround journey and position HP into two great new companies
that are real scale and have a real chance to make a real difference on a
go-forward business," Whitman said on "Squawk on the Street."
"We're really excited
about this," she said. "I think it's going to be better offerings for
customers and partners, career opportunities for employees and we believe it
will create real shareholder value."
Chuck House, shown here with son Warren, is co-author with Raymond Price, of THE HP PHENOMENON: INNOVATION and BUSINESS TRANSFORMATION (2009, Stanford University Press). He is Exec Director of InnovaScapes Institute, which published his memoir of HP Colorado Springs, PERMISSION DENIED, in 2013. House, Chancellor Emeritus of Cogswell Polytechnical College, was also executive director of Media X, Stanford University's research program on innovation, media and technology. Previously director of Intel Corporation’s Virtual Collaboratory, EVP R/D at Dialogic, President of Spectron Microsystems, SVP at Veritas Software and Informix Software after 29 years at Hewlett-Packard in a wide variety of roles. An IEEE Fellow for Logic Analysis technology, he also was President of ACM, the world’s largest Computer Science society, and is an ACM Fellow. He holds HPs only Medal of Defiance, awarded by David Packard for "extraordinary contempt and defiance beyond the normal call of engineering duty". Other awards include Engineer of the Year, Smithsonian Wizard of Computing, Top 50 inventions of 20th century, CNN top 25 inventions of past 25 years, Intrapreneuring Honor Roll