Topics: Compaq, Hewlett-Packard, Digital Equipment Corporation Pages: 1 (327 words) Published: March 19, 2013
The Hewlett-Packard and Compaq Merger
HP (Hewlett-Packard)
In 1938, two Stanford graduates in electrical engineering, William Hewlett and David Packard, started their own business in a garage behind Packard’s Palo Alto home. One year later, Hewlett and Packard formalized their business into a partnership called Hewlett-Packard. During the 1940s, HP's products rapidly gained acceptance among engineers and scientists. HP's growth was aided by heavy purchases made by the US government during the Second World War. HP was incorporated in 1947 and began offering stock for public trading 10 years later. In 1963, HP entered into a joint venture agreement with Yokogawa Electric Works of Japan to form Yokogawa-Hewlett-Packard Annual net revenue for the company grew from $5.5 million in 1951 to $3 billion in 1980. By 1997, annual net revenue exceeded $42 billion and HP had become the world’s second largest computer supplier. Compaq

The company is better known as Compaq Computer Corporation. Compaq was founded in February 1982 by Rod Canion, Jim Harris and Bill Murto, three senior managers from semiconductor manufacturer Texas Instruments. Each invested $1,000 to form the company. Their first venture capital came from Ben Rosen and Sevin Rosen Funds. The original Compaq PC was first sketched out on a placemat by the founders while dining in a local Houston restaurant, House of Pies. It had the charm of being called the largest manufacturers of personal computing devices worldwide. The company was formed by two senior managers at Texas Instruments. The name of the company had come from-"Compatibility and Quality". The company introduced its first computer in the year 1983 after at a price of 2995 dollars. spite of being portable, the problem with the computer was that it seemed to be a suitcase. Nevertheless, there were huge commercial benefits from the computer as it sold more than 53,000 units in the first year with a revenue generation of 111 million...
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