The New York Times reported that the “strategic rationale for a deal is largely to cut costs for two companies struggling to navigate the accelerating erosion of the traditional printing business. Analysts estimate that the savings from a merger could be $1.5 billion a year or more.”  The November 7, 2019 story entitled “Xerox Makes Takeover Offer for HP” included these comments:

The strategic rationale for a deal is largely to cut costs for two companies struggling to navigate the accelerating erosion of the traditional printing business.

Analysts estimate that the savings from a merger could be $1.5 billion a year or more.

Both HP and Xerox have announced streamlining measures in recent months.

Xerox said it planned to cut costs by more than $640 million.

And HP said in October that it would trim as much as 16 percent of its work force as part of a broader restructuring plan.

This makes a lot of sense given the printer market today.

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