Wednesday, January 9, 2013

HP takes $8.8 billion writedown on Autonomy | Essentials

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HP takes $8.8 billion writedown on Autonomy

Excerpt:

NEW YORK (CNNMoney) -- Hewlett-Packard said Tuesday that it has written down $8. 8 billion of the value of Autonomy, the British software company it bought last year, after discovering that Autonomy misrepresented its finances. HP bought Autonomy, which specializes in database search and other enterprise software technologies, for more than $11 billion in cash a year ago. HP said it had uncovered "serious accounting improprieties" at the company, including "outright misrepresentations" that occurred before HP acquired the company. Shares of HP (HPQ, Fortune 500) plunged by more than 13% in morning trading. The stock has lost nearly half of its value this year. The Autonomy grab was widely criticized by many technology analysts as too expensive, given that the software company had never made more than $1 billion in annual revenue. HP paid a 58% premium over Autonomy's share price at the time.

People:

Meg Whitman

Overall Sentiment: 0.254925

Relevance: 0.625635

SentimentQuote
-0.173347Whitman said that the board -- of which she was a part at the time of the purchase -- "feels terribly" ...
0Whitman said she expects the legal process to be a "multi-year journey."
Sentiment Stats:
  • Number of Quotes: 2
  • Aggregate Sentiment: -0.173347
  • Mean: -0.0866735
  • Standard Deviation: 0

Apotheker

Overall Sentiment: 0.0606282

Relevance: 0.254643

Mike Lynch

Overall Sentiment: 0.48935

Relevance: 0.214184

Shane Robison

Overall Sentiment: -0.289028

Relevance: 0.211936

Key:

  • Aggregate Sentiment is meant to be an indicator of an individual's overall sentiment.
  • The Mean is meant to be an indicator of an individual's average comment sentiment.
  • The Standard Deviation, when there are enough quotes, will indicate an individual's consistency of sentiment (i.e. a Standard Deviation of 0 would mean they were very consistent in their sentiment and 1 would mean they were very inconsistent).

Note that quote stats are likely to be meaningless beyond the aggregate score due to the tiny sample size. However, they are always provided just in case you find something useful there.

Additional Info:

FieldTerminology: software company

Overall Sentiment: 0.052889

Relevance: 0.63711

Company: Hewlett-Packard

Overall Sentiment: 0.094406

Relevance: 0.769992

Disambiguation: OperatingSystemDeveloper | ProcessorManufacturer | SoftwareDeveloper | AcademicInstitutionReferences:
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