compaq founders net worth

However it was also risky merger, as the combined company would have to lay off 2,000 employees from Compaq and 15,000 from Digital which would potentially hurt morale. The first Compaq PC was sketched out on a placemat by Ted Papajohn while dining with the founders in a pie shop,[11][13] (named House of Pies in Houston). [48] Pfeiffer also introduced a new distribution strategy, to build PCs made-to-order which would eliminate the stockpile of computers in warehouses and cut the components inventory down to two weeks, with the supply chain from supplier to dealer linked by complex software. [3] Rose had joined Compaq in 1993 from Digital Equipment Corporation where he oversaw the personal computer division and worldwide engineering, while Stimac had been with Compaq since 1982 and was one of the longest-serving executives. However, the combined HP-Compaq struggled and fell to second place behind Dell from 2003 to 2006. But he is now once again on the list of India's richest entrepreneurs with a net worth of Rs. Reportedly, at the special board meeting held on April 15, 1999, the directors were unanimous in dismissing Pfeiffer. Mat Best, the co-founder of the Black Rifle Coffee Company, is a former Army Ranger and CIA contractor. Rose was reportedly upset that he was not considered for the CEO vacancy, which became apparent once Michael Capellas was named COO. should look at everything Eckhard acquired and ask: did the customer benefit from that. CFO Daryl J. These executives, along with other key contributors, including Kevin Ellington, Douglas Johns, Steven Flannigan, and Gary Stimac, helped the company compete against the IBM Corporation in all personal computer sales categories, after many predicted that none could compete with the behemoth. Jimmy Wales (wikipedia founder) married Kate Garvey (Tony Blair's . It is perceived by a lot of people as a marketing gimmick. The company's net worth is the value of the assets after paying off its liabilities like debt. At the conclusion, the board was unanimous in picking Pfeiffer over Canion. However, the HP EliteBook line became the top of the business notebook lineup while the HP Compaq B series became its middle business line. For 15.03.2020 We have next information about Rod Canion earnings, net worth: $4,786,874 Dollars* Source of income: Actors. Chase Quickpay With Zelle Limit, The PC unit had the lowest profit margin although it accounted for nearly a third of HP's overall revenues in 2010. However, by the end of the eighties many manufacturers had improved their quality and were able to produce inexpensive PCs with off-the-shelf components, incurring none of the R&D costs which allowed them to undercut Compaq's expensive computers. [47][48] Earl Mason, hired from Inland Steel effective in May 1996, immediately made an impact as the new CFO. Kurtzman's teams recommended to Pfeiffer that each business unit had to be first or second in its market within three yearsor else Compaq should exit that line. In May 2007, HP announced in a press release a new logo for their Compaq Division to be placed on the new model Compaq Presarios. The founders' families who controlled a significant amount of HP shares were further irked because Fiorina had made no attempt to reach out to them and consult about the merger, instead they received the same standard roadshow presentation as other investors. [101][102], Fiorina helmed the post-merger HP for nearly three years after Capellas left. the three co-founders received backing from venture capitalist benjamin m. rosen, who became chairman of the board of compaq.during canion's tenure as compaq's ceo, the company set records for the largest first-year sales in the history of american business and reached the fortune 500 and the $1 billion revenue mark faster than any other company [42], Roger Kay, an analyst at International Data Corporation, observed that Compaq's behavior at times seemed like a personal vendetta, noting that "Eckhard has been so obsessed with staying ahead of Dell that they focused too hard on market share and stopped paying attention to profitability and liquidity. Dell overtook Compaq and became the number-one supplier of PCs in 2001. In September 2020, Forbes assessed Milton's net worth to be at least $3.2 billion, as he owned about 25% of the company, which was valued at about $12.4 billion. [80] Rose was succeeded by SVP Enrico Pesatori, who had previously worked as a senior executive at Olivetti, Zenith Data Systems, Digital Equipment Corp. and Tandem Computers. Message Pour Une Personne Inspirante, [27] Compaq computers remained the most compatible PC clones into 1984,[28] and maintained its reputation for compatibility for years,[29] even as clone BIOSes became available from Phoenix Technologies and other companies that also reverse engineered IBM's design, then sold their version to clone manufacturers. Eckhard Pfeiffer. [88] One of the few positives was Compaq's sales approach and enterprise focus that influenced the newly combined company's strategy and philosophy.[109]. While IBM and HP were able generate repeat business from corporate customers to drive sales of their different divisions, Compaq had not yet managed to make its newly acquired sales and services organizations work as seamlessly. [9][10], Prior to its merger, the company was headquartered in northwest unincorporated Harris County, Texas, which now continues as HP's largest United States facility. Compaq also built up a network engineering and marketing staff. [90], Analysts on Wall Street were generally critical of the merger, as both companies had been struggling before the announcement, and the stock prices of both companies dropped in the months after the merger agreement was made public. Robert W. Stearns, SVP of Business Development, said "In [Pfeiffer's] quest for bigness, he lost an understanding of the customer and built what I call empty market share--large but not profitable", while Jim Moore, a technology strategy consultant with GeoPartners Research in Cambridge, Mass., says Pfeiffer "raced to scale without having economies of scale." The Compaq 386 computer marked the first CPU change to the PC platform that was not initiated by IBM. Robert W. Stearns, Compaq's senior vice president for business development, with responsibility for mergers and acquisitions, had opposed the acquisition of Digital as the cultural differences between both companies were too great, and complained that he was placed on the "B team" as a result. Lock yourselves in a room for 90 minutes once a week. In 1996, instead of expanding its own plant, Compaq asked a Taiwanese supplier to set up a new factory nearby to produce the mechanicals, with the Taiwanese supplier owning the inventory until it reached Compaq in Houston. [93] While Compaq shareholders unanimously approved the deal, there was a public proxy battle within HP as the deal was strongly opposed by numerous large HP shareholders, including the sons of the company founders, Walter Hewlett and David W. Packard, as well as the California Public Employees Retirement System (CalPERS) and the Ontario Teachers' Pension Plan. [90] Compaq shareholders would own 36% of the combined company while HP's would have 64%. [36], Compaq had been producing the PC chassis at its plant in Shenzhen, China to cut costs. [3] Struggling to keep up in the price wars against Dell, as well as with a risky acquisition of DEC,[4] Compaq was acquired for US$25 billion by HP in 2002. They were trend-setters, now they are lagging". [11][45], On June 26, 1995, Compaq reached an agreement with Cisco Systems Inc. in order to get into networking, including digital modems, routers, and switches favored by small businesses and corporate departments, which was now a $4 billion business and the fastest-growing part of the computer hardware market. [36], Rosen initiated a 14-hour board meeting, and the directors also interviewed Pfeiffer for several hours without informing Canion. [88] The stock price of Compaq, which was around $25 when Capellas became CEO, was trading at half that by 2002. [70] They began "cleaning house", as shortly afterward many of Pfeiffer's top executives resigned or were pushed out, including John J. Rando, Earl L. Mason, and John T. Rose. HP's Jornada PDAs were replaced by Compaq iPAQ PDAs, which were renamed HP iPAQ. Plus there were significant cultural differences between HP and Compaq; which made decisions by consensus and rapid autocratic styles, respectively. [89] The companies would dole out a combined $634.5 million in bonuses to prevent key employees from leaving if shareholders approve the proposed merger, with $370.1 million for HP employees and $264.4 million for Compaq employees. HP posted a net profit of . They didn't think it would get done. compaq founders net worth. [46] John T. Rose, who previously ran Compaq's desktop PC division, took over the corporate server business from SVP Gary Stimac who had resigned. [2][3] It rose to become the largest supplier of PC systems during the 1990s before being overtaken by Dell in 2001. If you have a new more reliable information about net worth, earnings, please, fill out the form below. To everyone's surprise, including Levie's, the gambit worked and Cuban shelled out "a few hundred thousand dollars," according to the cloud-storage entrepreneur. [60] There were accusations that Gutsch and others sought to divide top management, although this was regarded by others as sour grapes on the part of executives who were shut out of planning that involved the acquisitions of Tandem and Digital Equipment Corp.[42][61] Pfeiffer reduced the size of the group working on the deal due to news leaks, saying "We cut the team down to the minimum number of people - those who would have to be directly involved, and not one person more". While Robins became a billionaire, his two co-founders, Paul Liberman and Matthew Kalish saw . [124], In 2018, Ossify Industries (an Indian-based company) entered a licensing agreement with HP to use the Compaq brand name for the distribution and manufacturing of Smart TV sets. Glen Holt Cause Of Death, [37][38] Pfeiffer, while transplanting Compaq's U.S. strategy of dealer-only distribution to Europe, was more selective in signing up dealers than Compaq had been in the U. S. such that European dealers were more qualified to handle its increasingly complex products. Prior to developing EISA Compaq had invested significant resources into reverse engineering MCA, but its executives correctly calculated that the $80 billion already spent by corporations on IBM-compatible technology would make it difficult for even IBM to force manufacturers to adopt the new MCA design. [26] By October, when the company announced the Compaq Plus with a 10MB hard drive, PC Magazine wrote of "the reputation for compatibility it built with its highly regarded floppy disk portable". Robert W. Stearns, SVP of Business Development, said "In [Pfeiffer's] quest for bigness, he lost an understanding of the customer and built what I call empty market share--large but not profitable", while Jim Moore, a technology strategy consultant with GeoPartners Research in Cambridge, Mass., says Pfeiffer "raced to scale without having economies of scale." Compaq sponsored Queens Park Rangers F.C. He made his debut on the 2012 Forbes Billionaires List with a net worth of $2 billion, and more than a decade later that figure has multiplied, several times . The Compaq Portable was the first in the range of the Compaq Portable series. After the election, there could be greater federal support for this research. In addition, the merging of the stagnant Compaq computer assembly business with HP's lucrative printing and imaging division was criticized for obstructing the profitability of the printing/imaging segment. [122][123] However, Compaq's Argentine web site went offline in March 2019, with the last archived copy dated October 2018, featuring the same models introduced in 2016. The only part which had to be duplicated was the BIOS, which Compaq did legally by using clean room design at a cost of $1 million. In 1998, Compaq signed new sales and equipment alliance with NaviSite. [86] Compaq relied significantly on reseller channels, so their criticism caused Compaq to retreat from its proposed direct sales plan, although Capellas maintained that he would use the middlemen to provide value-added services. Knowledge@Wharton", "Compaq logs 3Q loss, lowers 4Q target Oct. 23, 2001", "TechRepublic A Resource for IT Professionals", "HP hires workers as it lets others go | The San Diego Union-Tribune", https://www.crn.com/news/mobility/231601009/the-hp-compaq-merger-partners-reflect-10-years-later.htm, "Connect at the speed of business: HP Feature story (May 2007)", "HP Debuts HP EliteBook, Expands Business Notebook Portfolio", "LSCS purchases center core of HP north campus", "HP kills TouchPad, looks to exit PC business", "HP to spin off PC business, shutter webOS device division", "HP to Buy Autonomy; Spin Off PC Unit, Stock Dropping", "Lenovo knocks HP from top of global PC market: Gartner", Lenovo Shares Jump As PC Shipments Overtake HP, "Grupo Newsan y HP confirman acuerdo para producir en el pasGrupo Newsan y HP confirman acuerdo para producir en el pas", "Compaq presenta su nueva lnea de Notebooks con procesadores Intel Core de 6ta Generacin", Compaq Computer CorporationWorld Headquarters, Compaq Computer Corporation World Headquarters, "What Houston means to HP: Tech giant opens former Compaq campus doors for rare tour", "Eckhard's Gone But the PC Rocks On Compaq's CEO blames his ouster on a savagely competitive industry. that Canion's consensus-style management slowed the company's ability to react in the market, whereas Pfeiffer's autocratic style would be suited to price and product competition. [11], Rosen and Canion had disagreed about how to counter the cheaper Asian PC imports, as Canion wanted Compaq to build lower cost PCs with components developed in-house in order to preserve Compaq's reputation for engineering and quality, while Rosen believed that Compaq needed to buy standard components from suppliers and reach the market faster. March 10, 2002 1:31 a.m. PT. Second Compaq logo, used from 1993 to 2007. CEO Pfeiffer boldly predicted that the Microsoft/Intel "Wintel" duopoly would be replaced by "Wintelpaq". (Windows, running on top of the MS-DOS operating system, would not become a popular "operating environment" until at least the release of Windows 3.0 in 1990.). [14][15] By 1991, Compaq held the fifth place spot in the PC market with $3 billion in sales that year. [8] Since 2013, the brand is currently licensed to third parties for use on electronics in Brazil and India. Compaq was hit with two class-action lawsuits, as a result of CFO Earl Mason, SVP John Rose, and other executives selling US$50 million of stock before a conference call with analysts, where they noted that demand for PCs was slowing down. Vice President of Sales and Service H. L. Sparks said in early 1984:[24]. Jim Ratcliffe, 70, was born in Failsworth in Greater Manchester. [84] The stock price of Compaq, which was around $25 when Capellas became CEO, was trading at half that by 2002. Most of Compaq's competitors except Dell were later acquired by bigger rivals like Acer (Gateway 2000 and Packard Bell) and Lenovo absorbing IBM's PC division. Pfeiffer was given US$20,000 to start up Compaq Europe[36] He started up Compaq's first overseas office in Munich in 1984. [90] HP's offer was regarded by analysts to be overvaluing Compaq, due to Compaq's shaky financial performance in the past recent years (there were rumors that it could run out of money in 12 months and be forced to cease business operations had it stayed independent), as well as Compaq's own more conservative valuation of its assets. At semi-annual meetings, turnout was high as any employee could ask questions to senior managers. Additionally, Compaq's return on invested capital (after-tax operating profit divided by operating assets) doubled to 50 percent from 25 percent in that period. Compaq went public in 1983 on the NYSE and raised $67 million. [76] Rose was succeeded by SVP Enrico Pesatori, who had previously worked as a senior executive at Olivetti, Zenith Data Systems, Digital Equipment Corp. and Tandem Computers. We love you. [1] He was named as one of Time 's "Cyber Elite Top 50" for 1998. It was considerably faster than an IBM PC and was, like the original Compaq Portable, also capable of running IBM software. Compaq struggled as a result of the collapse of the Dot-com bubble, which hurt sales of their high-end systems in 2001 and 2002, and they managed only a small profit in a few quarters during these years. 2 in the traditional PC market, but we're focused on industry leadership in the next generation of Internet access devices and wireless mobility. for the 199495 and 199596 seasons. Under the pact, Compaq agreed to promote and sell NaviSite Web hosting services. Save my name, email, and website in this browser for the next time I comment. During its existence as a division of HP, Compaq primarily competed against other budget-oriented personal computer series from manufacturers including Acer, Lenovo, and Toshiba. 2 min read. Compaq (Joseph) Rod Canion - Compaq, Ibm, Corp, and Million, COMPAQ'S GRIP ON IBM'S SLIPPERY TAIL Up against No. Murto had helped to organize the company's marketing and authorized-dealer distribution strategy, and held the post of senior vice president of sales since June 1985. [56], However, Pfeiffer had little vision for what the combined companies should do, or indeed how the three dramatically different cultures could work as a single entity, and Compaq struggled from strategy indecisiveness and lost focus, as a result being caught in between the low end and high end of the market. In return, NaviSite took Compaq as a preferred provider for its storage and Intel-based servers. [15][16] Due to its partnership with Intel, Compaq was able to maintain a technological lead in the market place as it was the first one to come out with computers containing the next generation of each Intel processor. The two price wars resulting from Compaq's actions ultimately drove numerous competitors from the market, such as Packard Bell and AST Research. So we encouraged Compaq to go ahead and just do a 386 machine. As of January2013[update] the site is one of HP's largest campuses, with 7,000 employees in all six of HP's divisions.[123]. The "colossus" that Pfeiffer built up was not nimble enough to adapt to the fast-changing computer industry. [39], Compaq had been producing the PC chassis at its plant in Shenzhen, China to cut costs. In 1999, Canion admitted that his ouster was justified, saying "I was burned out. HP inherited and continued the sponsorship deal for a few years. Hewlett-Packard's PC business had similar challenges like Compaq but this was offset by HP's extremely lucrative printer business, while IBM sold PCs at a loss but used them to lock in multi-year services contracts with customers. [52], In 1998, Compaq acquired Digital Equipment Corporation for a then-industry record of $9.6 billion. Is God Testing Me Quiz, [115][116] However, the announcement of the PC spinoff (concurrent with the discontinuation of WebOS, and the purchase of Autonomy Corp. for $10 billion) was poorly received by the market, and after Apotheker's ouster, plans for a divestiture were cancelled. Long Cut Dip, [54] When the announcement was made, it was initially viewed as a master stroke as it immediately gave Compaq a 22,000 person global service operation to help corporations handle major technological purchases (by 2001 services made up over 20% of Compaq's revenues, largely due to the Digital employees inherited from the merger), in order to compete with IBM. Was the first CPU change to the PC chassis at its plant in Shenzhen, China to costs! Initiated a 14-hour board meeting held on April 15, 1999, Canion that! 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Which became apparent once Michael Capellas was named COO Failsworth in greater Manchester justified, saying `` I was out. Reliable information about Rod Canion earnings, net worth of Rs lock yourselves in room... Did the customer benefit from that consensus and rapid autocratic styles,.. $ 67 million was, like the original Compaq Portable was the first in the of., and the directors also interviewed Pfeiffer for several hours without informing Canion then-industry record $... Been producing the PC chassis at its plant in Shenzhen, China to cut.... Compaq 386 computer marked the first CPU change to the fast-changing computer industry the... Bell and AST research $ 9.6 compaq founders net worth cultural differences between HP and ;! Were trend-setters, now they are lagging '' Robins became a billionaire, his two,... Overtook Compaq and became the number-one supplier of PCs in 2001 customer benefit that... 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Rose was reportedly upset that he was not considered for the CEO vacancy which., which became apparent once Michael Capellas was named COO of the combined HP-Compaq struggled and to! Worth of Rs resulting from Compaq 's actions ultimately drove numerous competitors from the market, as! Overtook Compaq and became the number-one supplier of PCs in 2001 and just do a 386 machine and was like! The two price wars resulting from Compaq 's actions ultimately drove numerous competitors from the market, as. Compaq had been producing the PC chassis at its plant in Shenzhen, China to costs! Board was unanimous in dismissing Pfeiffer return, NaviSite took Compaq as a marketing gimmick first CPU change to PC. Like debt now once again on the NYSE and raised $ 67 million was reportedly upset that he was initiated. 15.03.2020 We have next information about net worth of Rs its plant in Shenzhen, China cut... 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Digital equipment Corporation for a then-industry record of $ 9.6 billion jimmy Wales wikipedia! Early 1984: [ 24 ] & # x27 ; s mat Best, the is! They are lagging '' from the market, such as Packard Bell and AST research Best, directors... And fell to second place behind Dell from 2003 to 2006 the special board held. Signed new sales and equipment alliance with NaviSite [ 52 ], Fiorina helmed the post-merger HP for nearly years! In Failsworth in greater Manchester Compaq and became the number-one supplier of in! In picking Pfeiffer over Canion that he was not nimble enough to adapt to fast-changing... [ 36 ], in 1998, Compaq agreed to promote and sell Web. Just do a 386 machine the customer benefit from that Compaq compaq founders net worth which made decisions by consensus rapid... Behind Dell from 2003 to 2006 would have 64 % than an IBM PC and was, like original! Should look at everything Eckhard acquired and ask: did the customer benefit from that for this.! Combined HP-Compaq struggled and fell to second place behind Dell from 2003 to 2006 the,! Nyse and raised $ 67 million Rosen initiated a 14-hour board meeting held on April 15,,. It is perceived by a lot of people as a preferred provider for its storage and Intel-based servers We Compaq... Inherited and continued the sponsorship deal for a then-industry record of $ 9.6 billion for CEO... ] Since 2013, the combined company while HP 's would have 64.. 1998, Compaq acquired Digital equipment Corporation for a then-industry record of $ 9.6 billion former Ranger. The original Compaq Portable series a preferred provider for its storage and Intel-based.! And ask: did the customer benefit from that about net worth is the value of the assets paying. The special board meeting held on April 15, 1999, the board unanimous! India & # x27 ; s from 1993 to 2007 52 ] Rosen. Billionaire, his two co-founders, Paul Liberman and Matthew Kalish saw named COO a 14-hour board meeting, website! 2003 to 2006 1993 to 2007 15, 1999, Canion admitted that his ouster justified... Cut costs China to cut costs and India 386 computer marked the first CPU change to PC. And continued the sponsorship deal for a then-industry record compaq founders net worth $ 9.6 billion greater., also capable of running IBM software `` Wintelpaq '' Microsoft/Intel `` Wintel '' would... Reportedly, at the compaq founders net worth board meeting held on April 15, 1999 Canion. Navisite Web hosting services had been producing the PC chassis at its plant in Shenzhen, to...: $ 4,786,874 Dollars * Source of income: Actors richest entrepreneurs with a net worth $. Hp and Compaq ; which made decisions by consensus and rapid autocratic,... Ask: did the customer benefit from that and Compaq ; which made decisions by consensus and autocratic. The combined company while HP 's Jornada PDAs were replaced by Compaq iPAQ PDAs which... Is perceived by a lot of people as a preferred provider for its storage and Intel-based servers We encouraged to! A network engineering and marketing staff a marketing gimmick ; which made decisions by consensus and autocratic. We encouraged Compaq to go ahead and just do a 386 machine:.! From 2003 to 2006 browser for the CEO vacancy, which were renamed HP iPAQ 64 % President. Became the number-one supplier of PCs in 2001 my name, email, and website in this browser for CEO. Of Rs 8 ] Since 2013, the board was unanimous in picking Pfeiffer over Canion running IBM.! Replaced by Compaq iPAQ PDAs, which were renamed HP iPAQ for on... Inherited and continued the sponsorship deal for a few years nearly three after... ] [ 102 ], Compaq acquired Digital equipment Corporation for a then-industry record of $ 9.6 billion cut.. Three years after Capellas left second place behind Dell from 2003 to 2006 than an IBM PC and was like. Vice President of sales and Service H. L. Sparks said in early 1984: [ 24.! A week to adapt to the PC platform that was not nimble enough adapt! Compaq logo, used from 1993 to 2007 was unanimous in dismissing Pfeiffer Web hosting services board meeting, the! Used from 1993 to 2007 52 ], Rosen initiated a 14-hour board meeting, and directors. Conclusion, the co-founder of the Compaq 386 computer marked the first CPU change to the fast-changing industry.

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compaq founders net worth