Hp autonomy deal book

The whole deal meant that hp had to suffer a loss of almost 8. Nov 21, 2012 as the fallout from hewlettpackards purchase of autonomy continues, attention is turning to the advisers who took part in the deal with one name emerging from the pack. How autonomy cooked the books, per hp business insider. Hp completes acquisition of autonomy dealbook the new york. Another change for hp in the preacquisition process regarding the autonomy deal related to board of director oversight. Hewlettpackards inevitable impairment the motley fool. Hp crashed autonomy because us tech titans top brass. On the other hand, stock price of autonomy went up by 72%. Hewlettpackard has extended its offer for the autonomy corporation, as it tries to win over shareholders. Hewlett packard offloads last autonomy assets in software deal. Dec 01, 2012 as the deal was being considered, hp cfo cathie lesjak did raise questions about hps ability to pay such a high price and whether it could integrate autonomy well, sources said.

But the deal has highlighted glaring flaws in hp s bigger story. Autonomy is not required to book an obligation to provide future services for income previously recorded. The problems went undetected by outside accountants both autonomys auditors. If everything was kosher, technically you cant book income until the obligation has already passed. The case in san francisco federal court is being closely watched in the u. Hp is blaming hidden flaws in autonomys books for the loss of billions of dollars. Hp ceo meg whitman said that the problems with the deal didnt surface until a whistleblower came forward after autonomy ceo mike lynch left the company in may. Hewlettpackards inevitable impairment i told you so. Apr 30, 2018 autonomy excfo hussain guilty of fraud. In its 4q earnings report that year, it blamed serious accounting improprieties, disclosure failures and outright misrepresentations on behalf of autonomy. After writing about how hps autonomy deal failed most of the four tests of a successful acquisition, i received emails from two people who highlighted six red flags that should have warned hp. Apotheker was the prime architect of the autonomy acquisition in 2011, but was booted out before the deal closed. Autonomy deals raise questions as hp row escalates.

The first of this book is as good as anything ive read this year. The price of silence on wall street the new york times. However, the ftse 100listed micro focus is keen to stress that the deal will not be a reincarnation of autonomy in the uk. Click here to start a new topic please sign and date your posts by typing four tildes new to wikipedia. That came shortly after court documents emerged, revealing that hp was aware of dodgy accounting practices at autonomy prior to the acquisition. Asked on cnbc last week about whether the board had discussed with apotheker the speculation about autonomys books, hps current ceo. Hewlettpackard tried to protect bosses after botched. Mar 12, 2014 there seem to be four components 1 accounting standards as cory janssen says, it relates in part to revenue recognition.

Leo apotheker, hps boss at the time of the deal, departed almost immediately afterwards and raymond lane, the boards chairman at the time, and two. They believe that the next big enterprise software app following erp, crm, etc. The hp acquisition of autonomy lessons learned for doing. Hp crashed autonomy because us tech titans top brass lost. In hpautonomy debacle, many advisers but little good advice. Nov 26, 2012 after writing about how hp s autonomy deal failed most of the four tests of a successful acquisition, i received emails from two people who highlighted six red flags that should have warned hp. The deal to acquire autonomy was conceived by leo apotheker, the then chief executive of hp, who planned to sell its personal computer.

Leo apotheker would have advised hp to abandon autonomy. Sep, 2011 hewlettpackard has extended its offer for the autonomy corporation, as it tries to win over shareholders. The curious case of hp, autonomy and the scandal that wont. This analysis of accounting measurement challenges discusses these issues in detail, in addition to making sense of the accounting of hps acquisition of autonomy.

Hp used the income approach to measure the value of autonomy, which is the focus of this study in accounting measurement challenges. Hewlett packard autonomy deal kindle edition by sartaj singh. It seemed likely that a deal like aols acquisition of time warner would never be repeated, rivaled or surpassed, but the deal for autonomy. Though the company is integrating into hp software, autonomy remains a singular operational business. The hp acquisition of autonomy lessons learned for doing compliance by the book. The ideas underlying the autonomy, while not completely new, are combined and presented in a far darker, more ominous manner than ive experienced before. Hp conducted an internal investigation of autonomys accounting practices and found that the company was substantially overvalued at the time of the deal due to misleading statements about its revenue, growth rate and other financial standings. The indictment alleges that from 2009 to 2011, lynch and codefendant stephen chamberlain, autonomys former vp of finance, intentionally misled investors, auditors and analysts. Hp crashed autonomy because us tech titans top brass lost their nerve, says lawyer for exceo mike lynch. Sep 08, 2016 hewlett packard offloads last autonomy assets in software deal. The curious case of hp, autonomy and the scandal that won. As the deal was being considered, hp cfo cathie lesjak did raise questions about hps ability to pay such a high price and whether it could integrate autonomy well, sources said. Nov 26, 2012 as with any market number, this number can be wrong, too high for some companies and too low for others.

It means following that process during high stress times. The mysterious case of hewlettpackards autonomy deal. Autonomys strategy has been to focus on specific markets in which idol can be substituted as the foundation for existing technologies and leveraged across customer environments this has provided autonomy rapid cost savings and the addition of installed base and channel has created significant crosssell upsell. How a desperate hp suspended disbelief for autonomy deal reuters. Leo apotheker would have advised hp to abandon autonomy deal. Hp, which rebranded its enterprise division as hpe earlier this year, has been locked in a longrunning battle with autonomy after an acquisition. Jul 28, 2016 the first of this book is as good as anything ive read this year. Hp is blaming hidden flaws in autonomy s books for the loss of billions of dollars. Meg whitman hp execs are claiming they were misled by autonomy when former ceo leo apotheker made the secondlargest acquisition in the. Aug 21, 2011 they bought autonomy because they bought the dream. Aug 24, 2014 autonomy deals raise questions as hp row escalates. Chance to avoid a disastrous deal, hp did not follow its own internal protocol for acquisitions. They bought autonomy because they bought the dream.

Autonomy was acquired by hewlettpackard hp in october 2011. In hpautonomy debacle, many advisers but little good. Another change for hp in the preacquisition process regarding the autonomy deal related to. The offer, which has been accepted by autonomys board, is 64% above the firms market value. The announcement was not taken very positively by hp shareholders and the decline in stock price resulted in a 4. Ironically, rather than being the architect of the autonomy deal, apotheker was initially lukewarm to it. Mar 27, 2019 hp crashed autonomy because us tech titans top brass lost their nerve, says lawyer for exceo mike lynch. In anyones book, backdating purchase orders is a falsification of facts. It came about because apotheker had two major initiatives early in his tenure. Autonomy deals raise questions as hp row escalates business. Information on acquisition, funding, investors, and executives for autonomy. The deal to acquire autonomy was conceived by leo apotheker, the then chief executive of. The issue between autonomy and hp is largely the result of both the buyer and the seller thinking tactically. The silicon valley firm has accused autonomys former ceo mike lynch and its former cfo sushovan hussain of cooking the books to make.

Thus, it makes sense to attribute the entire write off to the deal. Nov 20, 2012 hp ceo meg whitman said that the problems with the deal didnt surface until a whistleblower came forward after autonomy ceo mike lynch left the company in may. I was so excited ripping through these first chapters. Hp chief executive meg whitman, who was a director at the company at the time of the deal, said the board had relied on accounting firm deloitte for. This is not a forum for general discussion of the articles subject put new text under old text. As the 2011 hp deal loomed, hussain went into overdrive. Lane, im running out of software companies, said a person familiar with the conversation.

As with any market number, this number can be wrong, too high for some companies and too low for others. As the fallout from hewlettpackards purchase of autonomy continues, attention is turning to the advisers who took part in the deal with one name emerging from the pack. Following allegations last week by hp that autonomy inflated its. In 2017, hp sold its autonomy assets, as part of a wider deal, to the british software company micro focus. And the benefits of the deals didnt accrue to autonomy until they were. Use the pitchbook platform to explore the full profile. But when hps investigators later went over autonomys books, they found the.