Dell to go private – Buyout imminent
Popular PC maker Dell is making arrangements at an increased pace to go private. This move, which has come as a surprise to many, can be attributed to the dwindling market for traditional Personal Computers. Since devices that measure up quite well to a personal computer like smartphones and tablets have flooded the market, the demand for PCs has been going downhill. The reason behind this decision can be cited as the need for a less-commercial-more-development-oriented environment as Dell is now aspiring to grow beyond the PC business. This might prove to be a good call for the company as Wall Street has become a tad too demanding in the recent past and is not too friendly with the not-so-fast runners in the race.

The value per share will be between $13.5 to $14 which makes the net worth of the company stand at $19 billion as advised by leading financial services firm J.P.Morgan. This pricing will not particularly be advantageous for major investor Southeastern Asset Management. This firm has been backing Dell since 2005 and owns 7.5% of the company. The largest stakeholders in Dell are Southeastern Asset Management and the company’s CEO Michael Dell who owns 14.1%. If one were to look back upon how Dell has fared in the past decade, the conclusion is not a peachy one as the stock has more than halved. Heading for a buyout and going private will mostly go a long way in perking up things as the traditional computers that Dell has been making contribute only to roughly a third of an individual share’s value. Resourcefulness and channelizing innovative acumen effectively to come up with new products/product concepts can put Dell back bang in the middle of the map!
Nikhila
Nikhila is a gadget lover and passionate writer. She likes to keep up with social media and Internet culture in particular while staying updated about all latest gizmos. Nikhila is a mechanical engineer-turning-into-technical-writer. Bibliophile, Grammar Nazi, dog lover, foodie, casual artist.




