Xerox ($NYSE:XRX), in a public letter this week, has declared its intentions to take over HP ($NYSE:HPQ). This decree by Xerox CEO John Visentin to the HP board has painted a big red target on the printing company.
“It also became clear from our dialogue with your shareholders that you and your advisors have been questioning our ability to raise the capital necessary to finance our proposal. … In order to remove any doubt, we have obtained binding financing commitments. My offer stands to meet with you in person, with or without your advisors, to begin negotiating this transaction.” - John Visentin
Grab your popcorn, this is going to be a fun one to watch.
Xerox confirmed it had secured financing for its $33 billion bid to absorb rival HP, even though HP has tried to block this attempt several times. A few big-time banks (Bank of America, Mizuho, Citi Bank) have chipped in some money to watch the madness and chaos unfold as well. As a result of these early shots being fired to kick off 2020, the Xerox stock went down and HP's went up.
Let's take a look at the alternative data, as well as the stock, for these two billion-dollar companies who are destined to either continue fighting forever, or will be forcefully smashed together like sitcom characters in an awkward situation.
Ironically enough, the trajectories of both companies are aligned in a unique way; usually, when companies add a lot of employees over time, they tend to grow their value and stock. But both Xerox and HP managed to continuously shed staff over years and years while adding more to their bottom lines. The recent dip appears to be part of a LinkedIn-wide account purge and not indicative of major layoffs.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.