10:08 • 5 months ago

Hewlett Packard takes a massive markdown of acquisition, alleges fraud

$8.8B the size of the charge Hewlett Packard took in its most recent earnings statement, with this fun explainer: “The majority of this impairment charge is linked to serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation plc that occurred prior to HP’s acquisition of Autonomy and the associated impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long-term.” Someone sounds angry.
$10.2B the amount Hewlett Packard paid for Autonomy Corporation in 2011. Which means they’ve written down most of the company’s value over the fraud allegations. The purchase came at a weird time for the company, at a point where it was heavily switching CEOs — with the then-current CEO, Leo Apotheker, attempting to make a sharp turn away from consumer products with the purchase. source

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