How can dell go private

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Fool Podcasts. New Ventures. Search Search:. Brendan Marasco marascobn1. Nov 1, at AM. Author Bio I enjoy learning about great leaders, well positioned companies, and sustainable industries. The Motley Fool provides a great platform to accomplish this goal. Join Stock Advisor Discounted offers are only available to new members. Dell spokesman David Frink said the board had conducted an extensive review of strategic options before agreeing to the buyout to ensure that the best interests of all stockholders were served.

It needs to innovate. Dell was regarded as a model of innovation as recently as the early s, pioneering online ordering of custom-configured PCs and working closely with Asian component suppliers and manufacturers to assure rock-bottom production costs.

But it missed the big industry shift to tablet computers, smartphones and high-powered consumer electronics such as music players and gaming consoles. Related Coverage. See more stories. The company said Michael Dell will contribute his 16 percent stake in the company but did not say how much cash he would inject. Although the deal will load Dell with more debt, some Wall Street analysts said that was relatively low compared to the cash the company generates.

Dell is also taking things slowly with its return to the public market. New investors will get a say, of course, as well as their fair share of any profits. But the arrangements will leave Michael Dell with more control than most traditional public companies. That tight grip has benefited the company and Michael over the past five years.

A newly public Dell would leave Michael Dell in the best position yet: at the head of his company, with all the gains from the growth while private but far fewer of the risks that come without public support. There are still plenty of questions for the future, though. As Lowery further points out, Dell also essentially has to reenter the market now. It remains to be seen whether Dell has learned any of the lessons from this cycle: will the company figure out a way to continue to grow with the changing market, expand into new fields, and anticipate new trends?

Or will we watch in another decade as the company retreats from the public sphere again to lick its wounds and see if it can figure out the next way to stave off defeat? For now, at least, Dell is back.