Two Tech Giants are About to Start a Proxy War
Business

Two Tech Giants are About to Start a Proxy War

Before going deep inside the news, let me ask you a question. Name the company which had a monopoly in printing around the ‘90s? If Xerox was on your mind, then you are correct. But, after almost three decades later, what has happened to the company? While they are still in business, HP has gained the majority of the market, and it seems like now Xerox and HP are preparing for war. HP has rejected a 33.5 Billion USD offer for the tech giant. It looks like it was either accept or face a hostile situation.

Xerox has also offered HP to buy its shares at 22 USD, which the company had already rejected last week. With the deadline of 25th November that is on today, Xerox sent a follow-up letter either to agree on the formal merger or Xerox would take their case to the HP shareholders. While on the other hand, HP is also a giant company on its own, mockingly called out Xerox’s proposal as ‘opportunistic.’ With the passing of the letters, it just seems like Xerox intends to force a potential combination between the two companies by hook or crook.

So, what exactly is this fuss all about? With losing its monopoly in the print business, Xerox has become aggressive with the industry. It is not just word of mouth; the sales figure are indicating the same. Only in the last five quarters, there is a decrease in the company revenue form 10.2 Billion USD to 9.2 Billion USD. One of the potential reasons for such is the booming sales of HP. The company has already proved itself over and over how it can bring affordability in the printing industry. This has lead Xerox to directly attack HP and remove the competition once and for all.