Report: Dell May be Going Private
January 14, 2013 8:34 PM
comment(s) - last by
Dell is in buyout talks with two private-equity firms
In an attempt to one day resurface as a true competitor in the computer technology industry, Dell is looking to go private.
An anonymous source recently told
that Dell is in buyout talks with two private-equity firms. The talks are in their earliest stages, so it's unclear if the buyout will go through.
Dell is likely looking to go private because it lost one-third of its value last year alone. PC sales are slow since PC demand can't keep up with that of mobile devices, and Dell has to hear about its financial failures from shareholders each quarter.
Dell's market value was $18.9 billion as of January 11. Its enterprise value is 4.4 times earnings before taxes, depreciation, amortization and interest for the last year, making it a lower valuation than every PC maker bigger than $1 billion with the exception of Hewlett-Packard.
Like some other PC makers, Dell was hoping that Windows 8's release would help boost sales of its hardware. However, Windows 8 device sales haven't been that impressive. While Microsoft happily announced
60 million Windows 8 licenses sold
just last week, that doesn't mean Windows 8 devices are flying off the shelves. Dell is still waiting on a sales boost for devices like the Dell XPS 12 convertible tablet.
third quarter in 2012
, Dell's profit fell 47 percent to 39 cents per share while revenue dropped 11 percent to $13.7 billion from a year previous (Wall Street expected $13.9 billion). Its net income fell from $893 million (49 cents per share) in Q3 2011 to $475 million (27 cents per share) in Q3 2012.
For the same quarter, Dell's PC shipments fell 8.3 percent from a year earlier.
Dell predicts fourth quarter revenue of $14 billion to $14.4 billion, which is a bit less than the $14.5 billion analysts were shooting for. In Q4 2011, revenue was $16 billion.
One good aspect is that Dell's shares increased 13 percent today after news of the possible buyout had spread.
This article is over a month old, voting and posting comments is disabled
1/15/2013 2:32:33 AM
Dell has shown it can still be innovative though.
Case in point, the Dell Inspiron Duo. - Even if it's not perfect and is paired up with only an Intel Atom, it's an interesting form factor.
Just a shame they never released it really outside the USA, may have done well in other countries.
So all is not lost for Dell just yet. :)
Besides, the PC market feels like it's stagnant these days, a 7 year old PC is pretty much what most business's and home users need for only Email, Facebook and word processing which makes up the portion of the market.
Take a look at the Steam hardware survey which would give a good general idea of what gamers are running and about 50% of users are still sitting with a Dual-Core clocked at 2.7ghz or less, 4gb of ram or less and with only 50% of users running Direct X 11 capable hardware.
They need to give a reason for everyone to ditch their old PC's for something new.
Gamers will probably get that excuse when the new consoles launch and most games stop using the ancient Unreal 3 engine and hence push the PC's hardware.
1/15/2013 9:46:19 AM
"Dell has shown it can still be innovative though."
Ya, I dont think its that they cant be innovative. Its just the people making product decisions have their heads up their asses. Year after year of "ya but" products. The XPS 13 looks fantastic "ya but" its screen is a low res piece of garbage. Every product they make has a "ya but". Make a nice product and people will buy it. Hell, if that XPS 13 had a higehr res screen and a good one at that, I would be all over it.
"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
Quick Note: Microsoft Announces 60 Million Windows 8 Licenses Sold
January 8, 2013, 5:30 PM
Dell Earnings Disappoint as PC Sales, Windows 8 Fail to Save It
November 16, 2012, 7:19 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information