As Carleton S. (Carly) Fiorina left Hewlett-Packard’s headquarters in Silicon Valley late on November 6, 2001, to head home after an especially hectic day at the office, she pondered her company’s merger plans.
At 10 o’clock that morning, Walter Hewlett, son of HP co-founder William Hewlett, called Ms. Fiorina, chairman and CEO of Hewlett-Packard Co. (HP). In their brief conversation, the co-founder’s son informed Fiorina that he and his family would publicly oppose the planned merger between Hewlett-Packard and Compaq. In addition, Hewlett told Fiorina that he would be issuing a news release within the hour to announce their decision. Then, just hours later, David Packard Jr., the oldest son of the other Hewlett-Packard co-founder, issued a statement announcing that he would also vote against the merger.
Suddenly, the future of HP—the company that created Silicon Valley—seemed to rest in the hands of heirs who had never wanted an active role in their fathers’ company.1 Had Fiorina failed to effectively “sell” the deal to Hewlett and Packard family members before making it public? Had she underestimated the power and influence these family members might have in determining the future of the company?