HP announced Thursday it will keep its personal computer operations, stepping away from a suggestion by a former CEO in August that the company might spin off the business.
"HP objectively evaluated the strategic, financial and operational impact of spinning off PSG (Personal Systems Group). It's clear after our analysis that keeping PSG within HP is right for our customers and partners, right for shareholders and right for employees," said Meg Whitman, who was named CEO of the company in September.
In a statement, HP said a review showed that costs to re-create the value of PSG in a stand-alone company outweighed any benefits of separation.
In August, former CEO Leo Apotheker had announced the company was considering a spinoff of PSG as part of "a plan to fundamentally transform the company."
In September, the HP board named Whitman to replace Apotheker, effective immediately. Whitman said at the time she would undertake a review of the company's strategic direction.
"The outcome of this exercise reaffirms HP's model and the value for its customers and shareholders," the company said in Thursday's statement.
"PSG is a key component of HP's strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers."
PSG is the world's largest manufacturer of personal computers, with $40.7 billion in revenues in fiscal 2010, the company said.