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HP To Acquire 3com For $2.7 Billion 231

Posted by samzenpus
from the getting-bigger dept.
An anonymous reader writes "HP and 3Com Corporation today announced that they have entered into a definitive agreement under which HP will purchase 3Com, a leading provider of networking switching, routing and security solutions, at a price of $7.90 per share in cash or an enterprise value of approximately $2.7 billion. The terms of the transaction have been approved by the HP and 3Com boards of directors."
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HP To Acquire 3com For $2.7 Billion

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  • Re:Awkward (Score:3, Insightful)

    by Knara (9377) on Wednesday November 11, 2009 @08:47PM (#30067996)
    I'm more surprised when someone *doesn't* talk, to be honest.
  • by spywhere (824072) on Wednesday November 11, 2009 @08:49PM (#30068014)
    I couldn't wait to find out which company HP would destroy next.
  • by Ralph Spoilsport (673134) on Wednesday November 11, 2009 @08:50PM (#30068024) Journal
    Given what is left of HP after the hurricane Carly destroyed the place.
  • Joy (Score:5, Insightful)

    by EkriirkE (1075937) on Wednesday November 11, 2009 @08:52PM (#30068046) Homepage
    I can't wait for 500MB driver packages, 234454 running background processes and 7 tray icons required to configure the hardware.
  • by NoYob (1630681) on Wednesday November 11, 2009 @09:02PM (#30068114)
    3c509 - that was the first card I used when I first started messing with networking in Linux - Slackware - going through config files in /etc....

    *breaks down sobbing*

    I need a hug!

  • by Snufu (1049644) on Wednesday November 11, 2009 @09:04PM (#30068130)
    3com, we hardly knew-- ...Well, I guess we did know you. So long.

    What happens when there are no companies left to merge? You get China.
  • Re:Apple??? WTF? (Score:2, Insightful)

    by symbolset (646467) on Wednesday November 11, 2009 @09:08PM (#30068166) Journal

    The iPhone is the number one smartphone in the market by the metric that matters most to Apple: net profit.

    And they sell overpriced x86 boxes to a niche market segment.

    That would be the "profitable" niche - and they appear to have taken over the "profitable" corner of every game board they play on.

  • Re:FU HP (Score:4, Insightful)

    by Jonah Hex (651948) <hexdotmsNO@SPAMgmail.com> on Wednesday November 11, 2009 @09:08PM (#30068172) Homepage Journal

    As someone who is going through HP's Work Force Reduction, it was a shock to me too. I'll just bet my 88K salary put them over the edge for this buy. - HEX

  • Re:FU HP (Score:3, Insightful)

    by camperdave (969942) on Wednesday November 11, 2009 @09:09PM (#30068180) Journal
    Buying paper plates won't earn HP any money. Buying 3Com will.
  • Re:Awkward (Score:3, Insightful)

    by khallow (566160) on Wednesday November 11, 2009 @09:39PM (#30068380)

    All the while Apple sews up more and more lines in the consumer electronics market and Jobs smiles subtly. It's almost as if he knows what happens once we've consolidated everything in the datacenter.

    Apple does nothing in the datacenter or networking and these companies do little in consumer electronics. I doubt the merger will mean much to Apple.

  • by Anonymous Coward on Wednesday November 11, 2009 @10:09PM (#30068578)

    As an ex 10 year gold partner of 3Com (left this year), I can say their quality of goods has gone downhill for the past 3 years. There were nice margins in their equipment but their Layer 2 and 3 switches and cores were plagued with problems out of the box or after just a few months of usage in datacenters and enterprise. Numerous port deaths, uplink failures, stacking communication issues, etc...

    The NBX100 was revolutionary, and they still run like champs, however the new NBX and V IP series chasis became junk. Numerous VXWorks drive failures and PRI cards were constantly losing chassis connections. Not to mention the RMA process was wretched.

    Personally, I believe 3Com's downfall was to go against Cisco by undercutting on price which lead to cost cutting on manufacturing and high deviations. Basically putting them on par with Linksys, DLink, and NetGear.

    I hope HP turns them around in certain areas as it would be nice to possibly have decent manageable copper/fabric switching, especially for blades, at a more competitive price for budget concise decision makers that prefer HP in their shops.

  • by MadnessASAP (1052274) <madnessasap@gmail.com> on Wednesday November 11, 2009 @10:14PM (#30068612)

    In the world of computers it's usually a bit of both.

  • Re:FU HP (Score:5, Insightful)

    by Mikkeles (698461) on Wednesday November 11, 2009 @10:23PM (#30068660)

    'So, why was it we busted our collective asses this year? Someone?'

    Because you are young, foolish, and naive and believe that hard work and diligence means something to a corporation.
    But don't worry; you will grow out of it :)

  • by ivan256 (17499) on Wednesday November 11, 2009 @11:01PM (#30068908)

    I'll give you a hint. The company is referred to with a two letter acronym that starts with an "H". They've spun off all but one of their best divisions over the last decade, and they're about to fold their printer division (The last that makes anything innovative or of any quality) into the division that makes their worst-in-class PCs. They also just bought 3Com.

  • Re:Awkward (Score:2, Insightful)

    by that this is not und (1026860) on Wednesday November 11, 2009 @11:31PM (#30069068)

    Well, yes, Apple is a consumer in the datacenter market. So is WalMart. So is Burger King.

  • Re:Apple??? WTF? (Score:3, Insightful)

    by evilviper (135110) on Wednesday November 11, 2009 @11:33PM (#30069088) Journal

    That would be the "profitable" niche - and they appear to have taken over the "profitable" corner of every game board they play on.

    Back in the Dot.Com era, there were plenty of companies out there that were all hype with little to show for it. I would continuously ask myself "Why does this crap sell?". Then the crash came, the companies that were nothing but hype were the first against the wall, they went away, the world went back to normal, and I said "Oh, now I understand!"

    Now, while Apple continues to sell slightly better than mediocre products for 10X what they're worth, on hype alone, I keep asking myself "Why?" With the economy in a slide, and history apparently repeating itself once again, I'm preparing, once again, to understand...

    MHO

  • by Miseph (979059) on Thursday November 12, 2009 @12:25AM (#30069320) Journal

    As somebody who was forced to use dial-up at home until 2005 (no broadband was available), I can attest that US Robotics modems were the best after the buyout as well. Connections virtually never dropped, they worked in every OS I threw at them, and they always made the best of the fact that the phone line wouldn't accommodate better than 28.8... Now that I think about it, the two I owned were outstanding, but I still don't miss them even a little.

  • by TheRaven64 (641858) on Thursday November 12, 2009 @08:37AM (#30071232) Journal
    Her $20m golden parachute is indicative of why so many companies are badly run these days. CEOs incentives are not aligned with the company. It is very easy for the CEO do choose actions that benefit him or herself directly but don't benefit the company. It ought to be the responsibility of the board of directors, when considering a renumeration package, to ensure that the CEO (and other executives) only benefit personally when the company does well.

If what they've been doing hasn't solved the problem, tell them to do something else. -- Gerald Weinberg, "The Secrets of Consulting"

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