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Dell Is Now a Private Company Again
Gunfighter writes "StreetInsider.com reports that Dell, Inc. completed its go-private transaction by Michael Dell, Dell's Founder, Chairman and CEO, and Silver Lake Partners, a leading global technology investment firm. Stockholders will receive $13.75 in cash for each share of Dell common stock they hold, plus payment of a special cash dividend of $0.13 per share to stockholders of record as of the close of business on Oct. 28, 2013, for total consideration of $13.88 per share in cash. The total transaction is valued at approximately $24.9 billion."
Shut it down
"There is more worth loving than we have strength to love." - Brian Jay Stanley
October 6, 1997, Michael Dell was asked what he would do to fix Apple. His answer, "What would I do? I'd shut it down and give the money back to the shareholders". Well Dell has returned money to his shareholders. The Smartphone and Tablet industry will take care of the shutting-down-Dell part in due time.
Dell has one less thing to worry about: quarterly profits and revenue. This is right thing for struggling or declining companies. "analysts" won't bug them every moth how their market is shrinking and sales declining. Bet employees will feel safer too without threats of layoffs every time they don't meet "expectations"
I mean, given the climate is there really a doubt there will be one?
Windows 8 is a cunning ploy to sell more copies of windows 7 and build anticipation for windows 9.
since they are no longer bound to share-holders; and can innovate for the sake of innovation? No need to bow down to MS Overlords and do as they or the so-called markets please. They can afford to lose a billion bucks in chasing their own dreams.
If you keep throwing chairs, one day you'll break windows....
like Windows vista?
I'm god, but it's a bit of a drag really...
..though it may take a while to get there.
Dell no longer has to worry about what happens in the next quarter or fiscal year. Instead of trying to maximize profit, they can start looking a few years down the road and make some investments that won't pay off for a while. They have a better ability to take risks without the threat of a shareholder lawsuit. Employees no longer have to wonder if there's going to be mass layoffs next month to boost the stock price by a percent. But in the meantime they have very little ability to raise extra cash and employees are going to want some sort of incentive to stay now that ESPs have been discontinued. As long as they can keep their cashflow and talent for a few years they'll be fine in the server market.
The shares were worth WAY more than that in reality
Nope. The shares were worth what people were willing to pay for them on the stock exchange. Anything else is just wishful thinking.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
This is a huge opportunity for Dell to become more than just a badge on custom OEM hardware, and start making innovative products. My impression is this is a tall order, they haven't really been an innovative company outside of direct sales and supply chains. Innovative products are not part of their DNA, and the inertia of existing mid-level managers will be difficult to overcome.
TFA mentions they have a long term plan, but I've not even seen much speculation on what it is. Let the rumor mill churn.
With so many people predicting the death of laptops, servers, and workstations, to tablets and smartphones...despite how stupid such a claim is...I'd imagine that over the medium term the stock is substantially undervalued. If he did steps to revive things, stocks might go up, then he'd have to pay more. Now he can take bigger risks, change things more dramatically/dynamically, etc. Being in corporate america I just cannot see how anyone who does real work would ever try to do something on a tablet. They're great for taking notes during a meeting, but beyond that...such devices are for content consumption, not content production. There will still be servers, workstations, and yes - even laptops, for years to come. Windows8 may have farked some stuff up, but all the better to maybe partner closely with Ubuntu and make a mac-like integration suite, or...?
What's so funny about this? Folks love IPOs. Wall Street loves them. The press get all excited, and pundit talking heads start squawking. Everybody thinks that they make money on an IPOs. Actually, probably the Wall Street folks end up making the most money on an IPO.
I think Dell will just ride out the current bad weather in the PC business, and wait for blue skies, when everyone has forgotten why it went private in the first place
Then do another juicy IPO. Most companies only do one money generating IPO in their lifetime. This could be the start of a new trend of companies having a series of IPOs.
Actually, the more I think of it, this is exactly what private equity firms do: take something private, loot and pillage, and then sell it again as something remotely close to profitable.
On paper, at least.
Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
Public corporations are automatically evil since the public shareholders are evil. Private company at least has a chance to be not evil.
How about making some quality workstation laptops for business users?
We want:
- Rock-solid build quality and screen hinges
- Sturdy keyboards with standard 7-row layout (text nav 3x2 cluster, F key groupings, non-chiclet)
- Stick mouse (clit mouse, whatever you want to call it) with actual buttons, not these bullshit buttons built into a trackpad
- Understated, boxy designs (no flashy bullshit)
- 4:3 screens (or, at least, 5:4)
Lenovo has completely fucked up the ThinkPad line by removing literally every great feature that made a ThinkPad great. Go and eat their lunch.
Well, I can think of some scenarios where the stock price does not actually reflect the true value of the company. Like Enron and world com. The price people are willing to pay is dependant on the information they have about the company. If that is wrong due to book cooking, then the value those with the faulty infomation have placed on it is also wrong.
Well.. maybe. Or Maybe not. But Definitely not sort of.
Going "private", right. The money supposedly comes from Silver Lake Venture Partners. But they don't have $24 billion. Most of it is borrowed. From banks. Which borrow it from the Fed at very low rates. Which creates Government debt to pay for it.
"Private equity" today is really equity to debt conversion. With interest rates so low, that's very attractive to management.
This is "quantitative easing" at work.
Just what do you call an IPO that isn't actually the initial public offering? SPO?
For large sets, this will be our guide even unto death, for the LORD will work for each type of data it is applied to...
Plenty of people browse at zero, numbnuts, and you're not exactly giving anybody any 'super secret inside scoop'. Anybody with a pair of brain cells to rub together could see the same thing from the outside.
I support the Slashcott and will not be reading or commenting from 2/10/14 to 2/17/14. Beta is steaming pile of dog shit
DUDE! You bought Dell!
#naabhaprzrag, #sverubfr-000, #agi-fcbafberq, negvpyr[pynff*=' negvpyr-ary-'] { qvfcynl: abar !vzcbegnag; }
Sadly, I would wager that the reason his comment will not be read by many folks has more to do with how far down the page it is, rather than the karma rating.
(I browse at -1 anyway)
You beat me to it. As soon as they can get their lies together "Wall Street. Here we come." There's always money to be made on an IPO. At least for the insiders.
This is a good move for Dell, provided they can adopt to this new market. Dell should focus on the back end of the cloud. They make good servers. They just need to cut off the consumer arm and let it drift into the ether. They lost the consumer market a long time ago and like IBM need to focus on what they (still) do well.
Only the dead have seen the end of War. - Plato
Man I hope there tech support improves. It's next to impossible to get anyone on the phone and I even have their Tech certification. Our company just switched to HP due to the cost and there horrible support.
4:3 gets us awesome resolutions like 1400x1050 or 1600x1200.
Word.
I don't spend most of my computer time watching videos (wide-screen or no). I spend much of my time reading web pages or writing code, both of which profit from vertical resolution.
What good is 1920x1080 if I can have 1600x1200? Those extra 120px vertical are of more use to me than the 320px horizontal.
Esli epei etot cumprenan, shris soa Sfaha.
I *still* can't easily buy a box with Ubuntu on it as a consumer.
So screw them.
If you're correct, why has nobody bothered to reproduce that skin (since you make it sound like a piece of cake) and offer it as a download.
Perl Programmer for hire