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Dell Going Private In $24.4 Billion Agreement
Nerval's Lobster writes "Dell is going private again, as the result of a $24.4 billion deal involving private-equity investors and Microsoft. The deal will close before the end of the second quarter of Dell's fiscal 2014, according to Reuters. Dell founder and namesake Michael Dell, who owns roughly 14 percent of the company's common shares, will continue to lead the newly privatized venture as Chairman and Chief Executive Officer. He will contribute his existing shares to the new company, on top of a 'substantial' additional cash investment. As with other hardware manufacturers in the space, Dell faces the specter of a softening PC market. And while Dell has made significant efforts to penetrate other markets—including the launch of a private cloud architecture based on the open-source OpenStack—that weakness has affected its bottom line: for its fiscal 2013 third quarter, the company reported an 11 percent decrease in revenue from the previous year; while it enjoyed an increase in revenue from its servers and services businesses, revenue from its Consumer division dipped 23 percent. Its Large Enterprise, Small and Medium Business, and Public revenue also declined." Another take at the New York Times.
Give the money back to the shareholders!
Good maybe, they can get back to providing a good service/product for reasonable prices and a modest profit rather than the 100% as much money as possible even at the expense of future profits model that the current corporate culture in the world seems to mandate as the norm.
This could be the best thing for Dell.
I'm no economist, but the limited exposure I've had to public companies is that nowadays, it's all about ONLY the next quarterly report.
The way the stock market is pushing things, you can't actually make good long term decisions for your company because the only thing that matters is short term stuff.
By buying back the stock, they're possibly giving themselves the opportunity to take control back and run the company in the best interests of long-term strategy/goals.
Good Luck Dell
The Digital Sorceress
More importantly, they are getting Dell tech support.
My condolences.
Hoist Number One and Number Six.
Dude, if you keep buying yourself you're gonna go BLIND!
C|N>K
This must be some bizarro alternate universe, because I'm thinking to myself: "We need to start porting crapware to Linux".
Nokia has stopped with R&D, fired loads of staff and outsourced its production to cheap countries.
Its strengths were its serious R&D, the loyalty of its staff and its Scandinavian build quality.
You can ALWAYS turn a profit by slaughtering yourself, organs sell for a lot, just sell them off and you will be RICH! And dead. But RICH!
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.