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No word on whether or not the deal was taken at this time

Over the last week or so there has been a lot of buzz surrounding a leveraged buyout of computer manufacturer Dell by a consortium led by company founder Michael Dell. Michael Dell has been working with Silver Lake Partners and Microsoft to take the company private.

Michael Dell has previously been tipped to be using his current 16% ownership in the computer company he founded and as much as $1 billion of his own money in a bid to become the majority owner if the buyout goes through. A source that claims to be familiar with the negotiations says that the Dell board voted last night on whether or not to take the buyout offer.

For its part, Microsoft offered up this satement:

Microsoft has provided a $2 billion loan to the group that has proposed to take Dell private. Microsoft is committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future.

We're in an industry that is constantly evolving. As always, we will continue to look for opportunities to support partners who are committed to innovating and driving business for their devices and services built on the Microsoft platform.

Some analysts believe that taking Dell Inc. private will allow the company to operate more efficiently and take its doings out of the public eye making acquisitions easier to accomplish. Dell Inc. has been a publicly traded company for nearly 25 years. If the buyout deal happens, the transaction will be the largest leveraged buyout in the technology industry since the global financial crisis hit.

The Wall Street Journal reports that the final deal is worth about $23 billion.
 
Dell Inc. was once the world's largest computer maker with a market capitalization of over $100 billion. The company has had a difficult time competing in the ever-changing computer industry and has seen its market share dwindle -- it is now the third largest computer maker in the world. No official comments have been offered on the buyout by any of the interested parties at this time.

Sources: Bloomberg, Wall Street Journal, Microsoft



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RE: Meh
By Reclaimer77 on 2/5/2013 11:42:32 AM , Rating: 2
Ooops. I actually forgot about that lol. I'm not a walking quote machine you know! :P

p.s. I totally support Dell for saying that. The "Mac" was and always has been a failed product.


RE: Meh
By othercents on 2/5/2013 12:59:07 PM , Rating: 2
I wouldn't call the Mac a failed product, but more of a product geared towards a small market.

The statement by Dell was at the time for a company not making any money with an insignificant market share, however today Dell is making money and can continue on doing so. The reason for the buyout is to make the company more nimble to market conditions and allow it to innovate where shareholders are unwilling to go.

Don't be surprised if Dell makes significant risky changes quickly after the buyout to reposition itself as a market leader. Granted I doubt they are just looking at regaining market share in the PC market, but probably innovating into a new market and even trying to appeal to the gaming market.

Other


RE: Meh
By retrospooty on 2/5/2013 1:02:17 PM , Rating: 2
"The reason for the buyout is to make the company more nimble to market conditions and allow it to innovate where shareholders are unwilling to go."

Yup... Just look at HP and teh complete "Mucking Forons" on the board that basically destroyed the company that was. It wasnt bad CEO after bad CEO... It was the board hiring bad CEO after bad CEO and meddling.


RE: Meh
By TakinYourPoints on 2/6/2013 5:18:25 AM , Rating: 2
Axing Mark Hurd was maybe the worst thing to happen to the company. All the work with Palm, completely undermined. Such a huge loss of talent and technology too, for how long did WebOS have the best method for mobile multitasking?

The decisions of Apotheker (Autonomy too, wtf), mindboggling.


RE: Meh
By retrospooty on 2/6/2013 7:35:07 AM , Rating: 2
Ya, I still have fantasies about a modern Web OS. Palm's hardware always sucked, but picture this... Web OS, 2 years laters with lots of polish, speed enhancements ala IOS/Jellybean and modern hardware... Drool.

Such a waste.


RE: Meh
By TakinYourPoints on 2/6/2013 5:01:40 AM , Rating: 2
quote:
I wouldn't call the Mac a failed product, but more of a product geared towards a small market.


A third of laptop sales in the US and 90% of OEM sales over $1000 isn't a failed product. If it is then its a failed product line that other OEMs want a piece of.

quote:
Granted I doubt they are just looking at regaining market share in the PC market, but probably innovating into a new market and even trying to appeal to the gaming market.


I wouldn't be surprised if they tried to position themselves as IBM 2.0. The consumer PC market is highly unprofitable outside of the high end, and right now Apple and Lenovo are the only companies having any luck selling people computers over a grand.

Providing hardware and support to mid and large size business is a completely different story though. It makes up most of Microsoft's profits and its why IBM became so insanely profitable after dumping their consumer hardware division years ago.

Dell dropping the consumer end of their business will most likely drop the biggest boat anchor on their income. Focusing their attention on enterprise is the clearest path to profitability. It is something that they're very good at, and it happens to be way more profitable than chasing a consumer segment that chases the lowest price at any cost.


RE: Meh
By Reclaimer77 on 2/6/2013 3:32:30 PM , Rating: 2
I'm pretty sure when Michael Dell made that statement, Apple didn't have anything close to a third of all laptop sales. Again Takin, when it comes to Apple topics, you ignore the context of the discussion entirely and throw yourself on any grenade.


RE: Meh
By retrospooty on 2/6/2013 5:17:36 PM , Rating: 2
"Again Takin, when it comes to Apple topics, you ignore the context of the discussion entirely and throw yourself on any grenade."

No kidding. It's like an OCD thing.


RE: Meh
By Reclaimer77 on 2/6/2013 6:55:21 PM , Rating: 2
Yup. He just can't help himself. He MUST carry the Apple flavored water.

In iFanboi's heads 5 years of high profitably erases 15 years of mediocrity.


RE: Meh
By TakinYourPoints on 2/6/2013 8:18:56 PM , Rating: 2
Oh GTFO dude. In the context of 2013 he's talking about the Mac as a "failed product", not 1997. What he's saying was irrelevant by the early-2000s, but say anything positive about them at all and you're a fanboy. This isn't about being a fanboy, its about reality.

Jesus, give me a GD break.


RE: Meh
By retrospooty on 2/6/2013 8:40:50 PM , Rating: 2
What is a Mac?


RE: Meh
By TakinYourPoints on 2/6/2013 8:15:19 PM , Rating: 2
So obviously the Mac being a "failed product" in 1997 means it was a failed product ten years later?

Ok, sure...


RE: Meh
By Reclaimer77 on 2/6/2013 8:29:19 PM , Rating: 2
AHAAH so butthurt!!! And god you know nothing of CONTEXT, again.


RE: Meh
By TakinYourPoints on 2/6/2013 8:41:03 PM , Rating: 2
I posted about the context of the discussion below, I'm taking it completely into account. Do you understand it?

I know these are big words for the Appalachians and you want to sound smart, but try sticking with what you understand.


RE: Meh
By TakinYourPoints on 2/6/2013 8:36:36 PM , Rating: 3
Context:

quote:
The "Mac" was and always has been a failed product.


Followed by:

quote:
I'm pretty sure when Michael Dell made that statement, Apple didn't have anything close to a third of all laptop sales.


Make up your mind, is is successful or isn't it? You were clearly talking about the Mac being a failure even now in 2013, not just in 1997. It must get tiring moving your goalposts all the time.

What's funny is that you and retro completely bypassed the real meat of my post, 3/4 of it, which is that it wouldn't be surprising if Dell pulled an IBM and focused more on enterprise (something more profitable that they're good at) and dropped their consumer division.

The Apple stuff was a sidenote in comparison, but you focused only on that because getting rageface at them is apparently way more important and productive for you.

You guys sure are obsessed.


RE: Meh
By retrospooty on 2/6/2013 9:39:59 PM , Rating: 2
Obsessed? No. Tired of you taking any and every Apple topic and turning it into your own clandestine soapbox. I don't know if its that you don't see yourself doing it or that you don't think anyone else notices it but you do. The word Apple is typed and out comes the evangelist.

Really think about this comment...

"Again Takin, when it comes to Apple topics, you ignore the context of the discussion entirely and throw yourself on any grenade."


RE: Meh
By TakinYourPoints on 2/7/2013 12:26:24 AM , Rating: 2
I have, and he has zero idea what he's talking about when bringing up context.

If he mentions something and I and someone else (othercents in this case) shows how he is wrong, all of a sudden it is off topic and out of context even though it is specifically addressing and debunking things he said in the discussion.

Hell, I actually took things back on topic by talking about Dell, but you guys would still rather stay off-topic and have an angry circlejerk.

Yeah. You and reclaimer are obsessed.


RE: Meh
By TakinYourPoints on 2/7/2013 12:35:50 AM , Rating: 2
Like seriously, a tiny two sentence paragraph about Apple in a post that was mostly three large paragraphs devoted entirely to Dell set this off, and it is all you and reclaimer could sperg out over.

Seriously obsessed...


RE: Meh
By Reclaimer77 on 2/7/2013 1:05:40 AM , Rating: 2
lol no YOU started this all, because you just couldn't let it go. You HAD to jump on that grenade. You were compelled! it's just too funny...just...AHAHAHAHA!!!

I mean come on man, even Tony has learned when to pick his battles now.


RE: Meh
By TakinYourPoints on 2/7/2013 3:48:17 AM , Rating: 2
I made a response four posts deep into the subthread after Apple was brought up, mentioned them in passing while keeping it mainly about Dell going forward, and you still went full sperg on that little two sentence paragraph.

You're obsessed

http://i.imgur.com/mcrye.gif


RE: Meh
By retrospooty on 2/7/2013 7:16:32 AM , Rating: 2
Lets look again at what happened here, because it happens all the time with you.

1. This is a Dell article.
2. Someone mentioned "hey remember when M. Dell said this comment about Apple" ?
3. A few people made a quick comment about that comment.
4. Because the comment was about Apple, in comes Takin with POST AFTER POST and paragraph after paragraph of Apple soapbox material.

I mean how many paragraphs do you need to write off one comment? How many double and triple posts without even a response? You have even quad posted me before with 4 replies to one single post... And you aren't seeing the problem here? Hell, lets not even approach you admitting its a problem, can you at least see what we are talking about here? And then on top you want to come off as if you arent evangelizing Apple? You never go off like that when you disagree with a comment about any other company. Enter the word Apple and you go completely off the tracks... Seriously STFU, you arent fooling anyone.


RE: Meh
By Reclaimer77 on 2/7/2013 12:49:29 AM , Rating: 2
AHAHAH omg! Dude is like rabid over this stuff. I've insulted people's mothers and got less of a kneejerk.


RE: Meh
By retrospooty on 2/7/2013 11:18:05 AM , Rating: 2
"AHAHAH omg! Dude is like rabid over this stuff. I've insulted people's mothers and got less of a kneejerk."

You talking about my Apple ? You best not be talking about my Apple. You don't EVER disrespect a mans Apple. ;)


"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard

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