Wednesday, January 16, 2013

Dell going private in billionaire dollar LBO





Billionaire computer manufacturer, Michael Dell (pictured on the right, above), looks like he wants to take the company he founded in his dorm room private.

Currently in discussion with Silver Lake Partners, Dell's strategy is consistent with his new B2B marketing focus regarding hardware, services and consulting as the way to make money going forward.

This is from the company who wrote the book (in the United States at least) for a computer manufacturer to embrace all things JIT (just in time manufacturing). But when the consumer market changed (i.e. Apple Computer) Dell needed to change or adapt.

This is the reasoning behind going public. The ability to self-finance along with ignoring Wall Street and its focusing on quarterly financial results.

Dell Computer probably should have done this years ago, yet, Michael Dell was busy with other things at the time.

The quest for always holding the number one ranking in market share has been lost by Dell. HP and Lenovo are the new leaders in global PC shipments.