other side is hp inc. it will be personal computers and printers. the businesses are virtually the same size on the top line. profitability is about the same. the enterprise business has a slightly better profitability than the printer business. fundamentally, the operating profits are 10.5% on one side, 9.5% on the printer side. what you have here is hewlett-packard saying this wasn't working before. we will show you something different, offer you two different companies. >> hp missed the wave of mobile computing. can they actually recover? >> they didn't miss it cheaply. they made a huge acquisition, when it comes to palm, one of the initial leaders in mobile. they had their chances. one of the things this does is rearranges the deck. it changes the goal post. all year long, financial analysts have been asking meg whitman if the restructuring is more expensive, if you are laying off more and more people, how we meet financial targets? what will next you look like? she said wait until october, we never give guidance until the financial analyst meeting in october. we knew something

enterprises and, b, why not go with a name perhaps that's different on that side? i get hp inc, keep the branding but a different set of customers? why did you choose that side to go with ceo and are you going to stick with the name? >> yeah we love that name. hewlett-packard enterprises and hp inc both have the strength of the iconic company that everybody recognizes worldwide, everybody loves hp, our customers from the beginning have said we want hewlett-packard to win. so i think that was the right decision. and i decided to, with the support of the board, go to hewlett-packard enterprises because i have a passion for the enterprise. i have a passion for the new things that are happening in cloud, the data, security, mobility, and converged infrastructure. we also had a fantastic executive who has deep domain expertise in the personal systems business and printing business over the last couple of years, deon weissler. where are my skills best suited? where is the breadth of the talent and the board and the management team felt like this was the right answer. and, again, yes, i am

paypal division. today hp says it will spin off its printer division. calling the new company hp, inc. all why all the high tech spin? >> it usually leads to a new big company that creates a lot of jobs and wealth. a little bit of money and say go. >> while investors boosted shares of hewlett-packard stock on the news, which comes with 5,000 job cuts, some tech watchers call the move desperate, even a mess. >> no. this is a well-organized mess, i think. sounds good. but the turn around is working and we're going to split it up. honestly, i couldn't agree more with roger mcnamee. even splitting up, they face enormous challenges. >> the new company and the printer business will be much cleaner than when they're -- >> hp has been slow in turning itself around after several well-publicized tumbles. now with more job cuts and a plan to split, the company hopes change will come more quickly. >> meg whitman will remain a ceo of the software and services company. hp, inc. will get a new ceo. the layoff total since whitman took over is projected to be at 55,000 people. hp's share price is up by 70%

publicly traded entities. the pc and printer business using hp inc and services with hewlett-packard enterprise. david faber talked to meg whitman in an exclusive interview this morning. here's what she said. >> another enormous change. everything about how compute is being bought, paid for, sold, how applications are written, from, you know, a licensed model to a sas model. how employees and customers interact with technology. and you can just see the pace of change. and there's technology that is enabling that change that wasn't even available four or five years ago. whether that's cloud or the ability to take huge data sets and gain insight, we have to take advantage of those changes. and if you're not careful you'll be disrupted and you have to stay on your toes and be able to respond much more rapidly when the industry is in a more normal state and you have to remember continuity of leadership is an important thing here. i'll still be the ceo of hewlett-packard enterprise and the non-executive chairman of the board of hpinc. where there are synergies we can take advantage of, su

called hp inc. will be devoted to printers and personal computers and led by an executive in that division. whitman will lead the other company which will be known as hewlett enterprise. it's dedicated to enterprise hardware, software and services. the breakup creates two companies that can be more focused and agile in a rapidly changing marketplace. >> today is only possible because the turnaround has succeeded. think about what we've accomplished over the last three year, a rebuilt balance sheet, an innovation pipeline that is significantly improved over three years ago. i would argue best in class in the industry now. an inspired workforce, a new leadership team, renewed confidence of our partner, our shareholders as well. but we have to gather ourselves as one hp, but now we're in position to take advantage of what's going on in the marketplace and position these two companies for growth. >> but there's another reason whitman might have acted now. the tech new site says hp tried to sell its pc division but rivals such as lenovo and dell weren't interested. investors cheered th

palo alto-based company says the new hp, inc will focus on personal computers and printers. and the new hewlett-packard enterprise will handle software and technology infrastructure including cloud-based services. the plan includes 5,000 job cuts with a pledge to invest the money saved into research and development. >>> 2 investigates looks into complaints from moving company customers and discovers a web of tricky tactics used by some firms that could end up adding big bucks to your bill. a deputy district attorney tells us he's uncovered all sorts of schemes to rip off customers. they include inflated fees, estimates that suddenly double, even people's belongings being held hostage. and there is a common but legal practice in the industry that could leave you vulnerable. some customers complain the job was subcontracted to another company without their knowledge. >> that's an area that's right for abuse actually for a broker to muddy the waters, to not distinguish their services from the moving company's services when, in fact, they may be the front for the scamming moving company

hp, inc. will face len ovoand other companies that make printers and computers. plus start-ups and all those new computing experiences, but what's very interesting here as well is printing and a lot of these big companies are actually not generating as much revenue so hp, inc. facing a different kind of challenge. liz: sure is. and again this is an hp computer weighs about 1800 pounds. i've been a supporter it's hard when you feel like they're lagging so hopefully it had it may help with that turn around. we have the closing bell ringing about 48 minutes away. when a yee says we're putting our troubles behind us, you want to believe them. right? well, last wednesday, gm chief did just that. but 24 hours later, there was not one, not two, three more recalls of gm vehicles. why did bar announce a new aggressive turn around plan only to have the bright paint on it crack. the wall street journal jeff, he's been breaking all kinds of news on general motors particularly on their recalls. what does he think? he's joining me live next. and double your money plus then some. the nba and nfl

will have hp, inc. and hewlett-packard enterprise. hp, inc. will be computers an printers. hp enterprise will be services and hardware. meg whitman will take that over. both companies will have about the same size. more than $50 billion in annual revenue. they say this is important now to remain competitive to be more of a niche company. back in 2011 when it was first suggested, at that time the company was not healthy enough to split up according to meg whitman. melissa: nicole, thank you so much. aig seeking compensation from the financial crisis. who is who is in the 2008 bailout in the hot seat this week. wall street wants them to pay for their mistakes. >>> leader of the pack no longer? kim jong-un's actions are speaking louder than his words. do you have too much money? ♪ she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is hea

silicon valley. now the company is being carved up. each part serving different purposes. hp inc. will take over the legacy part of the company, that is personal computers and printers. hewlett packard enterprise will look forward, emphasizing cloud computing and r & d. this company will be run by current chief meg whitman. each company laying off an additional 5,000 people by the end of next year. >>> go-pro video can now be captured live as it's happening, livestream is a major site for broadcasting realtime video over the internet. today, it updated its app to add cameras from the san mateo company. the go-pro connects to iphones wirelessly. the iphone can be left in a pocket like a wireless hot spot. the app handles the uploading of video in real time which is pretty remarkable. >>> on the subject of streaming, one big company is pulling the plug, bowing to competition from bay area based netflix. >> 7 on your side's michael finney is here with more on that. >> netflix will soon have less competition, at least come tomorrow. red box, streaming video service operated by verizon, wil

business under the hewlett-packard enterprise name and hp inc. will be the company to incorporate the company's personal systems group. it's printing and pcs essentially for both commercial and consumer purposes. creating two companies that will be in the fortune 50. interestingly of roughly the same size. about 57 billion and 58 billion. meg whitman will be the ceo of hewlett-packard enterprises. she will be on the board of directors there. whitman will be the non-executive chairman of hp inc. which will have a new ceo, the gentleman who is currently overseeing that company at this point right now. so creating two very large companies. only a week after we saw a very similar move in the sense of splitting the company or the intent to do so by e-bay. and then speaking of whitman, she uses many of the same themes that you heard as well into last week, namely the seat of the marketplace changing so quickly that now is the time to give these companies an opportunity to become more nimble, more agile, hp is so complex at this point. but interestingly you know the current plan in place sin

technology giant is putting its personal computer and printing business under one roof using the name hp inc. tech services like data storage, servers and software will operate under hewlett-packard enterprise and will be led by mel meg whitman. hp is in the midst of restructuring and announced tens of thousands of job cuts in recent years. >> breaking overnight. expensive bottles of wine are a loss after a huge fire. >> police have made an arrest already. amy hollyfield is live in walnut creek with the story. amy? >> hi. police zeroed in on a piece of evidence right when they got here. they were immediately suspiciousle. it led to an arrest. they got the call to come here to civic drive in walnut creek at 9:20 last night. a wine storage facility was on fire. it's called wesley ashley. a wine maker in san the that rosa uses this space to store wines for distribution. when investigators arrived they saw a gas can sitting here at the scene. they were suspicious right away. they then checked the surveillance footage from a nearby business. investigators say they spotted a known transient ne

almost 5%. it would split itself into two companies. one called hp inc. would operate the consumer oriented printer and computer business. the other called hewlett- packard enterprise would control the hardware services. it also includes a plan to invest the money saved into research and development. it was not enough to boost the broader market. the dow jones lost 17. the nasdaq lost 20. investors are waiting for word on interest rates from the federal reserve. >>> islamic reserves appear close to taking a syrian town. a few thousand kurdish fighters are trying to protect the town. some 12,000 civilians are caught in kobani. leon panetta told u.s.a. today, the war against isis could be a long one. >> i think we're looking at kind of a 30 year war kind of history here in which it's going to take a long time. >> back in this country, 19- year-old mohammed hamsikan was arrested saturday trying to fly to the middle east to join isis. >>> the director of the secret service began his first day on the job today. joseph clancy is a 25 year veteran of the secret service. before his retirem

to stockholders next year. meg whitman is ceo of the hp inc. and patricia russo is the chairman of hewlett-packard enterprise. dion weisler is the ceo of hp inc. >> it's a big part of the business. printers and pcs are $56 billion. so it's a big move. you have to see what else is left in the company after they accomplish this spinoff. >> indeed we'll be discussing that more later in the show. >>> now the first person diagnosed we ith ebola is being treated in nebraska. the freelance nbc news cameraman who contracted ebola last week is expected to arrive in nebraska today for treatment. that's a separate case. dr. friedman will be briefing president oh baa ma today saying he's confident this will not spread into the u.s. >> the bottom line is we know how to stop it and it's not going to spread widespread in the u.s. we can do public health interventions that stop it in its tracks. >> and nbc's tracie potts is in washington with more. tracey? >> well, wilfred, we expect doctor frieden to update president obama today. the cdc has 35 people in west africa trying to con tape the disease

. the or one hp, inc. will be headed up by dion weissler. that company not the big growth model. printer and pc sales have been gradually weakening over the past several years, although pc sales had a nice rebound for hp in the most recent quarter. a lot of businesses have had to refresh their pc line-ups after microsoft ended support for windows xp. hewlett-packard shares up about 5% in early trading on that news. >> also, yahoo is reportedly about to invest a lot of money that it got from the ali baba ipo into snapchat. it would give snapchat a valuation of $10 billion. that company has about 100 million users of its instant messaging service. that's where people second photographs and have a time limit of one to ten seconds on how long that photograph could be looked at before it disappears from the service. >> he the big board -- the big board, a big rally friday. off to a good start this morning as well. the dow up well over 80 points. nasdaq gaining 18. the s&p is higher by 10 points. back to you. >> jason brooks from kcbs news. thank you. >>> cupertino based apple appears

down with the soon to be ceo of hp inc. >> on the 3 d printing side we announced breakthrough technologies. we weren't satisfied with currently where the industry is sitting. there's problems with speed and cost. we say we'll never get into the market until we solve those three fundamental problems. we now have launched with multijet fusion a product that prints at ten times it does with unbelievable accuracy. >> is it ten times the expense of the current? >> absolutely not. it has breakthrough economics. three things really make it revolutionary. >> i want to make sure people understand. this is the man that is going to run hp ink. sale of pcs and printers. that's the easiest way to do it. >> it's very important to point out $56 billion company, $5 billion profit, this is a needle-mover 2016/'17. will go on sale this weekend selected best buy. time to do an ecosystem. >> i don't understand what you're telling me. >> you can build something. ultimately what will happen, you can make something that's 3-d on your computer. >> then print it. >> right. they took my bobble head. it

. that business does 57 billion in annual sales. the other company is going to be hp, inc., comprising the pc division. earlier today on cnbc, whitman talked about why a split makes sense. >> we think this is the best alternative for our customers and our shareholders. the market has changed dramatically in terms of speed and we're in a position now where we can pursue the turnaround of hewletthewlett-pa. the brand is on both canes in one form or another and a better position to get focused companies to respond more quickly. >> now, investors are cheering the news today and skeptics question the strategy. bernstein says the split doesn't change a basic fact, both these businesses are challenged for growth and facing long-term heavy headwinds. the spin-off he said fueled by weakness not strength. >> thank you. let's dig deeper into this split with me now in an exclusive interview is former hp chairman ralph whitworth. welcome. thank you for joining us. >> happy to be with you here, kelly. >> do you agree with the assessment josh said of a split from weakness rather than strength? >> no.

lose the focus on the product. one of the things, especially the hp inc. which is the one that's going to keep the consumer products, it's got to have a consumer product visionary the way elon musk can be totally passing about tesla. >> have you seen anybody parachute into a company -- >> i'm trying, but my brain is working. >> we'll think about it. okay. >>> we'll hit the pause button and come back with walter in a bit. in the meantime, top rated analyst on airlines is out. more on that next. and later how confident is america in the president when it comes to the economy? the cnbc all american survey diving into the president's role when "squawk box" returns in a moment. relief. a cure. today, we believe every life deserves world-class care. as one of the top four hospitals in the nation, over 100,000 people from around the world come to cleveland clinic for care each year. and we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today. where the reward was that what if tnew car smelledit card and the