And today was a big day with a 6% gain thanks to rumors that IBM was looking to buy 3D Systems for a premium at $90 per share (DDD’s current price is $70 as of this writing).

Why Would IBM Buy 3D Systems?

First of all, 3D Systems is the leader in the 3D printing market. The company boasts the largest market capitalization and has proven it can expand its scope through acquisition and R&D.

Read: What is next for 3D printing giant 3D Systems?

The company has also expanded into the hot desktop 3D printing category.

3D Systems expects to generate around $500 million of revenue this year, with the majority of sales in the industrial sector. But it has also expanded aggressively into the consumer business with the Cube and CubeX 3D printers, and expects prices of desktop 3D printers to come down from $1300 to below $500 over time.

Related: Watch our video interview with 3D Systems CEO

A Defensive Move?

Perhaps IBM is concerned about the entry of other computing giants. HP CEO Meg Whitman said recently, “We want to lead this [3D printing] business. HP Labs is looking at it.”  With over $13 billion in cash, would HP’s first move be an acquisition?

Amazon also has entered the 3D printing market with the launch of a 3D Printing category on Amazon.com. eBay has also entered with a mobile 3D printing strategy.

Time will tell if the IBM rumor is true, and if so, IBM could be the company to usher in the next technology revolution.

Related: IBM Sees Exponential Growth of 3D Printing Industry

“We want to lead this business. HP Labs is looking at it.” – Meg Whitman, CEO of HP

At the Canalys Channels Forum in Bangkok, HP CEO Meg Whitman finally broke the silence on whether HP would get back into the 3D printing game. ”We are excited about 3D printing,” Whitman said.

Whitman also expressed hesitation about getting in too early. She shared her concerns about how slow 3D printing is today. ”To print a bottle can take eight to ten hours. That’s all very interesting, but it is like watching ice melt,” she said.

HP previously had a partnership with Stratasys that fell through in August 2012.

Read: Stratasys and HP Part Ways on 3D Printer Manufacturing

Wait for 2014

Whitman did not provide a specific timeline on when HP will bring its own 3D printing products to market, but did indicate that 2014 would be their entry timing.

“3D printing is in its infancy,” she said. “It is a big opportunity and we are all over it. We will have something by the middle of next year.”

CC image by TechShowNetwork

Here are the top 10 most popular stories On 3D Printing brought you in August 2012.

10. 3D Printed Meat for Dinner: Peter Thiel Backs Bioprinting Startup

9. TangiBot has a Kickstarter Project for a Much Cheaper MakerBot

8. Google Employees Treated to 3D Printed Pasta by Renowned Chef

7. Stratasys and HP Part Ways on 3D Printer Manufacturing

6. Open-Source 3D Printer Pwdr Takes on MakerBot, Offers New Materials

5. Finally, an iPhone Case That Does Something Useful (Opens Beers)

4. Video: Beauty and the Beak; a Bald Eagle’s 3D Printing Story

3. Team Great Britain Olympic Cyclists Fitted with 3D Printed Helmets

2. Infographic: How 3D Printing Works, Industry Growth, Stocks, and More

1. 3D Printing at Top of “Hype Cycle”, Gartner Reports

Thanks for reading in August!

A roundup of the top news On 3D Printing brought you from July 30 to August 5.

Monday, July 30

• Shapeways Turns Four, Parties Like 3D Printing Rock Stars
• Bringing Woolly Mammoths and Dinosaurs Back to Life With 3D Printing

Tuesday, July 31

• Video: MIT’s Neri Oxman and Biologically-Inspired 3D Printed Systems
• 3D Printed Fractal Art Turned Into Beautiful Jewelry and Sculptures

Wednesday, August 1

• Stratasys and HP Part Ways on 3D Printer Manufacturing
• With Sites Set on LEGO, 3D Systems Cubify Launches Robot Toy Line

Thursday, August 2

• Creepy 3D Printing: Get a Replica of Your Unborn Fetus
  

Friday, August 3

• Top 10 Countdown: Most Popular 3D Printing Stories in July 2012

Stratasys and HP have discontiued a manufacturing and distribution agreement for 3D printers. This either means that HP is preparing its own line of 3D printers, or is opting out of the 3D printing market entirely. Stratasys does not see this as a hit to their financial projections, but the market reacted by initially lowering their share price.

From the Stratasys press release:

Stratasys, Inc., a leading manufacturer of 3D printers and production systems for prototyping and manufacturing applications, today announced that Stratasys and HP have agreed to discontinue their manufacturing and distribution agreement for 3D printers, effective at the end of 2012. Stratasys does not expect the termination of its agreement with HP to have a material impact on its financial results for the current year and intends to work closely with HP to ensure a smooth transition for customers.

“Stratasys has enjoyed a productive relationship with HP, and moving forward, we will continue working towards our goal of achieving broader 3D printer usage worldwide,” said Scott Crump, chief executive officer and chairman of Stratasys. “As the market for 3D printing technology grows, Stratasys is focused on further developing our independent channel distribution initiatives to expand our distribution reach even further. Our recently-announced merger with Objet will help grow customer awareness of the many opportunities to deploy 3D printing and rapid prototyping techniques and will allow us to implement an even broader distribution channel with a more extensive geographic reach.”

Under the terms of the definitive agreement signed in January 2010, Stratasys developed and manufactured for HP an exclusive line of 3D printers based on Stratasys’ patented Fused Deposition Modeling (FDM(R)) technology. Later that year, HP began a phased rollout of the 3D printers in the mechanical design (MCAD) market in select European countries.

 

HP CEO Meg Whitman photo by TechShowNetwork used under Creative Commons license.