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News Dell goes private with Microsoft cash

Discussion in 'Article Discussion' started by Gareth Halfacree, 6 Feb 2013.

  1. Gareth Halfacree

    Gareth Halfacree WIIGII! Lover of bit-tech Administrator Super Moderator Moderator

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  2. Guest-23315

    Guest-23315 Guest

    I see it as a good move. Without having to report to shareholders every quarter, they can spend the money where and when they need to to be innovative. This way they can post loses in two quarters, based on R&D say, and then post profits at other points, and everyone doesn't jump ship, destabilising it.
     
  3. Guinevere

    Guinevere Mega Mom

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    I wonder what his 'grand plan' is? Keep the focus on the enterprise sector alone? HP & IBM are still top of the game but Dell's doing okay there.

    Or go for the consumer space a bit more aggressively? Dell have always been a bit... shall I say lacklustre... when it comes to selling profitable gear to the end consumer in high volumes.
     
  4. Harlequin

    Harlequin Modder

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    the spotlight from teh stock market wouldnt help ` oh you lost 1% so your share price drops`

    Apple would do well to buy back as well
     
  5. jrs77

    jrs77 Modder

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    Best move from a company as big as Dell I've ever seen. The shareholders ruin alot of companies, or better said, the companies ruin themselves to pay higher dividends to the shareholders.
     
  6. Spraduke

    Spraduke Lurker

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    If I created a successul business I would go the route of John Lewis/Waitrose group and give a share to the staff. Guarantess hard working and loyal staff who want to see the company prosper, not some speculative city trader who decides its time to short sell your shares for no solid reason.
     
  7. Kovoet

    Kovoet What's a Dremel?

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    I only hope we do not lose our warranties though
     
  8. rollo

    rollo Modder

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    Wont be the last major tech company removing themselfs from the stock market this year.

    Why would warranties be affected its not like dell are going bankrupt they are just buying themselfs off the stock market.

    Which as far as i can tell is only a good thing.

    Means more cash for R&D projects less worrying about pleasing stupid investors who jump ship every other quater.
     
  9. Cthippo

    Cthippo Can't mod my way out of a paper bag

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    It seems like MS wants to become more of a hardware company than they historically have been, and this would give them something of a toehold in the consumer and enterprise markets for hardware.
     
  10. Gradius

    Gradius IT Consultant

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    The title isn't correct, it appear M$ has buyed the company, but only put mere $2 billions, while the fundation put another $1 billion, where the rest comes from? Not from M$ !
     
  11. Zephyr

    Zephyr Go V-Boy, Go!

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    It's 2012...really with the M$? Were you born in 2000?

    Good for Michael Dell. With all the speculation about Dell's future this is the most powerful political statement he can make at this time. Shareholders DO ruin companies and people very quickly forget the wins during times of loss. At this point Dell either transforms their company or goes under, and if they manage to succeed it's better for the consumer electronics industry and consumers on the whole.

    I think the most interesting thing here is Microsoft's investment. It could create a massive market for a Microsoft/Dell co-marketed brand to improve Dell's corporate performance and continue with Microsoft's repositioning as something similar to Apple.
     
  12. Necrow

    Necrow Minimodder

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    You sure?

    Good move by Dell, hopefully this will also drop the costs of PC's and Servers and will allow them to spend more in R&D and develop new tablets
     
  13. rollo

    rollo Modder

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    Ms bearly owns 10% of the total investment.
     
  14. lacuna

    lacuna Minimodder

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    I would say its more like 8%. As per the article.
     
  15. koola

    koola Minimodder

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    Will be interesting to see what perks Dell gets from MS over HP. There is bitter rivalry between the two and with MS taking a strategic share in Dell, it could well provoke more hostility between the two.
     
  16. David

    David μoʍ ɼouმ qᴉq λon ƨbԍuq ϝʁλᴉuმ ϝo ʁԍɑq ϝμᴉƨ

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    Here's hoping it works for Dell.

    I wonder if this will be seen as the start of a trend, with larger companies courting private investment and shunning the panicky herd mentality of the stock market?
     
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