http://www.economist.com/blogs/schumpeter/2013/03/dell
In a recent turn of event Michael Dell has decided he is going to try and take the company Dell, for which his namesake states, is going to try and go private. They would be helped by a company named Silver Lake and also Microsoft to try and make the company private. This has come to the disgruntlement of shareholders and other firms trying to buy up the company such as Blackstone, and Carl Ichann. These groups are trying to keep the company public to try and appease the shareholders. It will be interesting to see what ends up happening in this situationand who gives in first.
5 comments:
I think this could be a great opportunity for Dell if they go private. They will be able to have more "freedom" by not having to appease shareholders which could help lead to innovative ideas that Dell has seem to lacking in the recent years.
Dell has been held down by their shareholders. I agree with Jacob. If gone private, it will have a chance to boost it's sales by coming up with new technology and come at par with it's competitors.
I can see both pros and cons for Dell to go Private. Yes, like stated above, Dell going private can offer multiple benefits. It can reduce reporting requirements and regulations such as SOX, GAPP, etc. It can git rid of costs that are mandatory of public companies such as those that cover legal and compliance. However, on the other hand, transition has a lot of risks. Rival competitors may not sit idle and be more aggressive as Dell transitions. Also, going private may not be the best decision. If things don't turn out as optimistic as they are thought to go, Dell may be in deep trouble
I think going private is a great decision for Dell. It might give them a chance to catch up with their competitors and become a bigger force in the industry once again. By not having to concentrate on their shareholders, they will be able to become more innovative which will help them in the long run.
I think the important question is who will ultimately take Dell private. There have been many bids, including from Michael Dell, Carl Icahn, and Blackstone.
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