Boston, MA 09/15/2014 (wallstreetpr) – Hewlett-Packard Company (NYSE:HPQ) is in talks to sell its photo sharing service known as Snapfish, sourced told Re/code. The asset could be acquired by a private equity firm or an industry player with interest in photo sharing service. HPQ acquired Snapfish for more than $300 million almost a decade ago. There are also reports that HPQ could acquire a cloud software startup known as Eucalyptus Software.
People with insider knowledge, but speaking on condition of anonymity, said Hewlett-Packard plans to do away with its Web-based photo sharing platform. The company has not reached a deal for the asset, but private equity firms and industry players are some of those interested in the asset. The sources did not offer financial details at which the asset might be sold. However, the company paid more than $300 million to add Snapfish to its portfolio back in 2005.
Turnaround efforts
Sources further said that Snapfish is currently in the company’s printing and personal business segment. Hewlett-Packard Company (NYSE:HPQ) last year tapped a new executive for the segment as it let go Todd Bradley who was a long-serving head of the unit. Bradley was replaced with Dion Weisler, a former executive at Lenovo. The attempts to sell Snapfish illustrate CEO Meg Whitman’s commitment to turnaround the company through the sale of non-core assets to focus on promising areas.
As reports about planned sale of Snapfish emerged, Hewlett-Packard Company (NYSE:HPQ) is also said to be eying cloud software provider, Eucalyptus Software, for acquisition. The startup offers open-source software used in the building of private and hybrid clouds. A source revealed that Hewlett-Packard could pay less than $100 million to acquire the business.
Acquisition of Eucalyptus Software would be a big relief for Hewlett-Packard Company (NYSE:HPQ) considering its misfortunes with Autonomy PLC, which it purchased for $11 billion. The deal with Eucalyptus could close 4Q, after which Eucalyptus’ CEO, Marten Mickos, would join HPQ as SVP and head of the cloud business.
Cloud and 3-D printing high on agenda
Hewlett-Packard Company (NYSE:HPQ) is trying to make a comeback through cloud offering and other emerging opportunities like the 3D-printing now that PC sales no longer offer hope for its top and bottom lines.
