Technology

Xerox considers $27 billion takeover of HP

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The company logo for Xerox is displayed on a screen on the floor of the New York Stock Exchange in New York U.S

A takeover of HP by Xerox would bring together two of the most recognized names in the printing industry. Both have experienced dwindling sales as of late due to the increased reliance on mobile devices. Should the deal actually take place, it would be made through both cash and stock, although we still don't know the deal's potential value.

Xerox is reportedly considering a bid to acquire HP Inc.at a premium over the PC and printer vendor's $27 billion market value.

Fujifilm said Tuesday it will make Fuji Xerox a wholly owned subsidiary, buying Xerox's stake in the firm and ending a 57-year-old partnership between the Japanese and US companies. The Journal said there is no guarantee that Xerox will follow through with an offer or that it would succeed although CNBC is reporting that Xerox has already put an offer on the table. Recent estimates have Xerox worth approximately $8 billion, while HP's worth is estimated to be around $24 billion. Also of note is the fact that HP Inc.

Only in August, HP said Chief Executive Dion Weisler was leaving because of a "family health matter" it didn't disclose.

The report comes just a day after Xerox signed a deal to sell its stakes in joint ventures with Fujifilm after the latter agreed to dismiss its $1 billion lawsuit against the U.S. firm.

The WSJ also reported that Xerox has received an informal funding commitment from a major bank.

On Monday, Xerox had said it will sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings, for $2.3 billion, after investor activism scuppered a deal involving the two companies.

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