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Hewlett-Packard and Compaq merged this past spring to form one of the largest IT companies in the market today This merger has reshaped and changed the two companies significantly and has affected the computer industry in general to a great extent The purpose of this paper is to look at this merger in terms of Karl Marxs theories of capitalistic accumulation How the new company benefits from this merger and what effects it has on the jobs and how its share of market has been changed I will start with the benefits of the merger for both HP and Compaq together HP acquired Compaq for 25 billion in a deal bolster its market in the computing industry HP has been well known for its imaging and printing products and Compaq until recently was the second largest producer of PCs in the market After the acquisition of Compaq the new HP has structured into four broad groups Imaging and printing access devices business services consultation with companies formerly associated with HP and infrastructure business encompassing servers storage and software from Compaq expertise This merger has helped centralize the resources of the two companies It has gathered the assets of both companies to form a new bigger constant capital 56 billion in assets which helps the new HP to earn profits rapidly than before when HP and Compaq were two different companies According to Marx this combination of the capitals from both companies lead to accumulation of more capital1 And the rate this accumulation is higher than it would have been if both companies earned separately The idea of centralization eliminates the competition between these two market leaders and their merger together puts them in a position to combine their expertise to compete against the others in the computing industry Therefore it would enable the new HP to attract a larger share of the market But how does this greater accumulation of capital
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