Xerox reportedly wants to takeover HP. SoftBank reports a quarterly operating loss for the first time in 14 years.
Making an Offer: Xerox, which makes printers and copiers, is reportedly planning to make a cash-and-stock offer for PC- and printer-maker HP.
Xerox, which has a market cap of $8.05bn compared to HP’s $27.7bn, apparently has an informal funding commitment from a major bank.
Combining Xerox and HP could see more than $2bn saved in expenses. And both companies are looking to cut costs. Last month, HP said it would cut about 16% of its workforce by 2022 as part of a broad restructuring plan to save $1bn a year. Xerox, on the other hand, said it would be selling its stake in a joint venture with Japan’s Fujifilm for $2.3bn. CNBC
Soft-Tank: For the first time in 14 years, SoftBank Group has reported a quarterly operating loss. The loss – which was $6.5bn – was for the three months ended September 30. It was mainly because of the Japanese conglomerate writing down some of its major investments including WeWork and Uber.
Uber’s IPO was not as successful as expected, and its share price has been consistently uninspiring. And WeWork’s IPO ambitions were derailed due to concerns over its perceived-as-oversold valuation and its business model. DealStreetAsia
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