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I think that's a fairly cynical response. Dell (Michael) is worth a huge amount. He has a very large stake and isn't doing this to milk his company. Whether he'
by jusben1369 14y ago
I think that's a fairly cynical response. Dell (Michael) is worth a huge amount. He has a very large stake and isn't doing this to milk his company. Whether he's successful or not is another question but it's certainly no cynical milking exercise. Now he can dig deep, not worry about earnings for the next 12 months, and tackle new opportunities.
- rrrrtttt 14y agoThe company's stock has been falling because investors think the PC is dying. His taking the company private means he thinks investors are wrong and the stock is undervalued. I never said this is a cynical exercise, but I think his incentive is purely financial.
- chiph 14y agoExcept that now, he's probably a minority shareholder (I think he invested $1bn of his own money, and I saw that MSFT invested $2bn) so if they say jump, he has to ask "how high?" All depends on how the deal was structured, though. Silver Lake, if they're like other private equity firms, are going to want a 20% return in around 5 years. They're going to put pressure on him to sell the unprofitable parts of the firm.