Michael Dell is taking his company back!

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Michael Dell is taking his company back!

Postby STBTechAL655 » Fri Feb 01, 2013 10:32 am

http://www.reuters.com/article/2013/02/ ... 9K20130201

I am so glad to see that there are some people left in the world who care for more than short term profit. I hope he can turn around the company once he gets it back; many good things can come out once the brains in a company are not permanently jerked and pushed around by the shareholders.
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Re: Michael Dell is taking his company back!

Postby Celt » Fri Feb 01, 2013 2:28 pm

This has been on the cards for a while. I think it will be good on some ways but bad in others, both for the company and the industry as a whole. Jury is out I suspect
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Re: Michael Dell is taking his company back!

Postby Hammer_Time » Fri Feb 01, 2013 3:39 pm

While I think this is the right move for Michael Dell and "his" company, this is one of the drawbacks that Celt is obviously referring to:

http://qz.com/49094/michael-dell-needs- ... -own-firm/

Jury is out until the full deal is done and made public... but I certainly understand Dell's motivation and in the long run this move is probably the right one for him and the company in general. He obviously needs control of his company in order to execute new plans quickly for mobile products ( they change on a daily basis these days ) and to focus on Dell server solutions for high density/low power cloud computer servers etc.

http://www.siliconrepublic.com/business ... ad-buyout/

Michael Dell to lead buyout of Dell Inc by next week

01.02.2013

Michael Dell, with the support of a consortium of investors that includes venture capital firm Silver Lake Partners and software giant Microsoft, could take control of the company he founded in 1984 as early as next week.

Dell, which has a market value of US$23bn, is set to delist and go private in a move that will give the company greater control over its destiny in a much-changed software and hardware world.

For one thing, the computing industry is increasingly a mobile business that is dominated by companies like Amazon, Apple and Google rather than PC stalwarts like Microsoft, HP and Dell. IBM wisely got out of the PC business altogether several years ago.

While sentiment may be against the old guard, the reality is they still manufacture and provide the tools that control the hard metal – ie, the servers – that keeps the network economy’s heart beating.

Dell knows this and as it regroups to focus on new hardware and its edge in cloud computing, it is likely to achieve its goals without the distraction of a fickle investor community.


It is understood that the deal to pay off shareholders could be the largest leverage buyout since the financial crisis struck in 2008.

The transaction details are currently being finalised with a view to concluding the transaction next week.

Debt financing from four banks – Barclays, Bank of America Merrill Lync, Credit Suisse and RBC Capital – of up to US$15bn has been secured, according to Reuters.

Michael Dell may contribute equity financing of US$500m to US$1bn in addition to his 16pc share of Dell, which is worth US$3.6bn. This will provide him with majority control of the company he founded almost 30 years ago in a college dorm in Texas.

Silver Lake and Microsoft are believed to be contributing between US$1bn and US$2bn each towards the transaction.

So, by next week, Dell could be a private company with greater control of its own destiny in a much-changed technology landscape.


This move is a bold and financially risky one ( personally ) for Michael Dell, but I believe it is the correct one for the long term success of Dell, and Microsoft has his back in it... so Go Dell!! :D

The shareholders can "suck it" ( when it comes to telling the company what to do and how to do it ) and leave the big decisions to the founder of the company, who is best capable of helming his own ship...in the end everyone wins, the company as a whole including the shareholders...
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Re: Michael Dell is taking his company back!

Postby Sauron_Daz » Sun Feb 03, 2013 4:19 am

Hammer_Time wrote:While I think this is the right move for Michael Dell and "his" company, this is one of the drawbacks that Celt is obviously referring to:

http://qz.com/49094/michael-dell-needs- ... -own-firm/


Page won't open?
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Re: Michael Dell is taking his company back!

Postby Hammer_Time » Sun Feb 03, 2013 4:47 am

Link works for me, just tried it here... mebbe your ISP?
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Re: Michael Dell is taking his company back!

Postby Sauron_Daz » Sun Feb 03, 2013 6:08 am

Must have been a glitch: it opens now.
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