Update: Taking Dell Private Part 2 (link)
Earlier this year, I wrote about the prospect of Michael’s Dell’s plans to buyback Dell shares and turn it around ( here ). Am sure the words swirling in Michael Dell’s mind nowadays is: “Now ain’t that a b*tch”. Until a few weeks ago,…
- Date
- March 26, 2013
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- Journal
- Reading time
- 2 min read
- Type
- Link
- Archive status
- Written by Fiifi
From the archive: Originally shared on 2013-03-26 through mrfiifiappiah. Language, links, and opinions reflect their original context.
Earlier this year, I wrote about the prospect of Michael’s Dell’s plans to buyback Dell shares and turn it around (here).
Am sure the words swirling in Michael Dell’s mind nowadays is: “Now ain’t that a b*tch”. Until a few weeks ago, Dell’s stock had nothing to write home about, apart from Michael Dell’s “private ideas”. Even when Michael Dell proposed the buyout, most people on the street thought’s were: meh; thus presenting the opportunity to buy Dell back for a bargain without anyone paying much attention. Unfortunately people with enough money(Carl Icahn and Stephen Schwarzman[Blackstone]) were paying attention to the numbers, and made a counter bid.
The horror! Imagine bidding for your own company, and having someone else at the auction jacking up the price. If Carl or Blackrock wins, Michael Dell might end up loosing his job as CEO. Owning 16% of Dell, he stands to profit financially even if he looses, but that isn’t why he want to take Dell private. If he wants to turn the company around, he needs to play his cards right else he might have to pay extra to take the company private which adds unneeded debt- making it much more harder to turn things around because you are more inclined to focus on financials rather than innovation.
Like I said in my earlier post, Michael can’t save Dell, and I wonder how Carl Icahn and Blackrock hope to achieve this feat. Question is: Are they even doing it to help turn Dell around or its just another leveraged buyout.