Once a trailblazing company known for a series of major innovations, Xerox ultimately turned into a cautionary tale of botched opportunity. And as people print less and less than they used to, Xerox’s competitors like HP are facing pressures of their own. Now, despite their mutual struggles and HP’s significantly larger market share, the Wall Street Journal reports that Xerox has proposed an acquisition of its rival.
In an interview for NPR’s Marketplace, Saikat Chaudhuri, executive director of the Mack Institute, expressed skepticism about this plan. Despite the potential benefits of the acquisition — like cost-cutting and combining the two companies’ strengths — he wonders, “Will two companies that are not doing so well, if they come together, actually do better? Oftentimes, that’s not the case.”
Chaudhuri also speculates that, based on the companies’ relative sizes, Xerox’s intentions here may be less than straightforward: “My suspicion is that Xerox is trying to get HP to the table to discuss a merger.” Once that conversation starts, he says, HP could be the one to buy Xerox.
Listen to the full interview above.