HP names Meg Whitman new President and CEO, gives Leo Apotheker the boot

Well, after less than a year on the job as HP's top dog Léo Apotheker is out, and former eBay CEO and one time candidate for California governor Meg Whitman is in. The move was hardly unexpected, but it very quickly evolved from quiet mumblings and rumors to full-fledged fact this afternoon. It was initially expected that Whitman would only be stepping in as an interim solution -- just another person passing through the revolving door at the entrance to the CEO's office. But, Whitman, a current board member, is in for the long haul. She's stepping in at a crucial and somewhat difficult time for the company that has seen its stock price plummet 47 percent, its $1.2 billion mobile OS flounder and is considering spinning off its PC business. She is no stranger to controversy (simply refer to her short tenure with Goldman Sachs) and was an integral part in growing eBay from a startup with just a couple of dozen staff members to one of the most popular destinations on the internet -- so, at least she's accustomed to having a few curve balls thrown her way.

In a statement, Whitman said, "I am honored and excited to lead HP. I believe HP matters – it matters to Silicon Valley, California, the country and the world." The company also announced today that Ray Lane is moving from a non-executive chairman role to executive chairman of the board of directors, and that the board intends to appoint a lead independent director "promptly." HP's press release and some information from the company's investor call announcing the decision are right after the break.

Update: At least for the immediate future, it doesn't appear the installation of Whitman at the head of HP is going to lead to a major change of course. The plans for the Personal Systems Group and webOS remain the same as those Léo Apotheker laid out in August -- an announcement new executive chairman Ray Lane admitted the company struggled with. In fact, Whitman said the "strategy is right," the problem lies in the execution. A spin off of PSG is still under consideration, and the new CEO said a decision will be made before the end of the year. Splitting off the PC business will only happen if it's deemed to be stronger as an independent entity, though it may still keep the HP branding. Meanwhile the company is "exploring options to optimize the value of webOS."