HP to Spin Off PC Business, Buy Autonomy for $10 Billion

is reportedly shifting away from its dithering personal computer business and is readying a big move into software.

Bloomberg is reporting that the tech giant—the world’s largest computer maker—will spin off its flagship PC division and is in talks to buy Autonomy Corp. for $10 billion.

The report cites anonymous sources with “direct knowledge of the matter.”

HP, which is scheduled to release its quarterly earnings report Thursday afternoon, saw its stock tumble on the news. Shares are down 25 percent so far this year.

HP CEO Leo Apotheker announced in May that the company would expand its cloud software offerings, especially as growth in PCs has stalled while tablets have surged.

Autonomy Corp. is a UK-based enterprise software company specializing in database search.