Afternoon Roundup: Today's Top Stories
At The Motley Fool, we know our readers like to be informed. We have scouted out today's most relevant news items and brought them to you all on one page. We hope you find this informative and useful.
In a shocking move, Hewlett-Packard (NYS: HPQ) announced it was considering spinning of its personal computer business. The biggest personal computer producer
made $40.74 billion on this business alone during the last fiscal year, about a third of the company's total revenue. The concept of a post-PC world comes from Apple (NAS: AAPL) CEO Steve Jobs, who explained his vision at the company's developers' conference. This concept is in line with the consumer trend shifting to companies like Apple and Google (NAS: GOOG) , which offer different devices, and moving away from PC-focused HP and Dell (NAS: DELL) . Sales of traditional PCs have been growing at only a 2.6% rate. Some experts say the problem doesn't come from management, but instead from a structural problem in the market where hardware on its own is not as attractive as before. Read more atThe Wall Street Journal.
(NYS: BAC) announced it would cut 3,500 jobs over the coming months to reduce costs. The bank is expecting to cut $1.5 billion quarterly with the measure, but thousands more jobs could be lost in following months. The measure is the first step toward a bigger restructuring of the bank that has disappointed investors. The bank's share price has been slashed almost 50% since January. The first phase of a restructuring is nearly complete, and results are expected to be announced next month. The country's largest bank has been especially hard hit by compromises to pay back mortgages that went sour during the financial crisis. Read more atThe New York Times.
's (NYS: BA) 747-8 freighter, the company's biggest airplane, got certification from the U.S. Federal Aviation Administration to enter commercial flight service. The European Aviation Service also approved the jet and Luxemburg Cargolux Airline will receive one next month. The certification ends a two-year delay that was due mainly to problems found during the plane's test. Boeing is also expecting approval of its 787 Dreamliner next week. Read more atBloomberg.
(NYS: BKS) , the largest bookseller in the nation, is not up for sale anymore, after receiving a $204 million investment by Liberty Media Corp. The offer ends negotiations between the two companies after Liberty offered $17 a share for 70% of the company, a deal that would have valued the company at $1 billion. The new investment instead gives Liberty newly issued preferred stock that could be converted into 12 million common shares, and gives it a 16.6% stake in the company. Barnes & Noble's stock has dropped significantly since the announcement. The deal will probably dilute the value of shares, but it gives the company much-needed capital to support and grow its business in a technology-heavy market. Read more atThe Wall Street Journal.
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At the time this article was published Michelle Zayed doesn't own any stocks mentioned.The Motley Fool owns shares of Apple, Google, and Bank of America.Motley Fool newsletter serviceshave recommended buying shares of Google and Apple.Motley Fool newsletter serviceshave recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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