HP Does 180, Keeps PC Unit

Tonight after the market closed, Hewlett Packard (NYSE: HPQ) announced it would be keeping its personal computer unit in house, and not spinning it off as the company had said it would earlier this year.

“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It's clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said Meg Whitman, HP president and chief executive officer. “HP is committed to PSG, and together we are stronger.”

“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry's broadest portfolio of PCs, workstations and more,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “We intend to make the leading PC business in the world even better.”

Whitman took over the CEO job from Leo Apotheker, who was with the Palo Alot, Ca.-based technology computer for just eleven months, before resigning amidst a slew of controversy. Whitman was previously the CEO of eBay (NASDAQ: EBAY) and unsuccessfully ran for California governor.

Shares of HP closed up $1.24 tonight to close at $26.99, a gain of 4.82%.