On a press meet held on Newyork, the spokesman of HP incorporation said that , it has written down about $8.8 billion of the value of Autonomy, that was bought on last year, after discovering that Autonomy misrepresented its finances.
HP bought Autonomy, which was specializes on database search and other enterprise software technologies, more than $11 billion in cash before One year . HP said it had a lot uncovered serious accounting improprieties on the company, including misrepresentations regarding outright that occurred before HP acquired the company.
The stock has lost nearly half of its value on current year and Shares of HPQ, Fortune 500 that plunged by more than 13% .
The Autonomy grabbing was widely criticized by many technology analysts such as was too expensive, given that the software company had never made more than $1 billion in annual revenue. HP paid a 58% premium over Autonomy's share price at the time.
During a conference that HP discovered the accounting fraud after a senior Autonomy manager came forward after Autonomy co-founder Mike Lynch left the company in May. HP hired a third-party to review Autonomy's finances, which confirmed the company had lied not only about its history but also its prospects