Surprising developments at Dell may save it

Tom Dougherty, CEO – Stealing Share

26 March 2013

Even if Dell is saved, there’s much work to do

Michael Dell, the founder of Dell Computer, looked like a cinch to reclaim private ownership of the company as recently as last month.

Hold on. New bidders have arrived.

“The Blackstone Group and Carl Ichan are making moves, which is very surprising. Dell has been hemorrhaging money for the last few years and, frankly, looked like it was on its way out.”

Maybe there is something worthy at Dell

The Blackstone Group and Carl Ichan are making moves, which is very surprising. Dell has been hemorrhaging money for the last few years and, frankly, looked like it was on its way out.

Once the market leader, the company is now third behind HP and Lenovo in the worldwide PC market. Its stock dropped 31 percent last year alone.

DellThe brand is in obviously in need of repair. Its business has failed to respond to changing market conditions and the brand itself has become an also ran in the category.

However it does not appear that all is lost. Incoming bids signal that there may be something worth fighting for in the business of Dell and its brand.

The bids increased the offered price per share from $13.65 to $14.25 by Blackstone and $15 by Ichan.

The fun will begin when the bidding is over and we see where the company is headed. Competitive bids turn the buyout from a pity party into an opportunity to reclaim the company’s leadership.

See more posts in the following related categories: Dell buyout Dell Computer Dell market share Michael Dell

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