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Dell going private in $24 billion deal

2/5/2013 05:46 PM EST
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mcgrathdylan
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re: Dell going private in $24 billion deal
mcgrathdylan   2/5/2013 9:08:27 PM
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Does this deal make sense? Has the pendulum swung to where these kinds of buyouts are attractive once again? I think this is a good deal for Dell shareholders.

rick merritt
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re: Dell going private in $24 billion deal
rick merritt   2/6/2013 1:59:02 AM
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A similar move seemed to work for Seagate. Despite Dell's acquisitions in networking, it seems it is still behind the curve in the post PC era. This move will give the once-retired Dell the breathing room to reshape his company into something that might survive the shifts.

rick merritt
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re: Dell going private in $24 billion deal
rick merritt   2/6/2013 2:01:12 AM
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PS: Nice of Microsoft to make a loan to facilitate the move given it helped suck profits out of the company and its cohorts for years.

eewiz
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re: Dell going private in $24 billion deal
eewiz   2/6/2013 2:09:45 AM
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what is advantage of going private? Is it that they dont have to please the wallstreet idiots every quarter and focus more on their products?

Ogemaniac
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re: Dell going private in $24 billion deal
Ogemaniac   2/6/2013 2:14:41 AM
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Why go public? The very rich and the hedge funds control so much cash now, why bother with the rubes, and all the public and legal scrutiny it brings. The only reason anyone goes public any more is so that the insiders can cash out. By the time us schmucks can buy, the money has already been made.

daleste
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re: Dell going private in $24 billion deal
daleste   2/6/2013 2:24:00 AM
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It is interesting to watch these companies come and go. I'm not sure if Dell can ever get back to where they were. If I were Michael Dell, I don't think I would do that. But then, I guess that's why I'm not a billionaire.

giriscitek
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re: Dell going private in $24 billion deal
giriscitek   2/6/2013 3:41:01 AM
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How does Dell find extra cash to keep up R&D efforts to satisfy market requirements to keep up its profits (savings for the future!) ?

mcgrathdylan
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re: Dell going private in $24 billion deal
mcgrathdylan   2/6/2013 5:24:15 AM
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It's always seemed to me that there are so many advantages to being a private company. Fewer regulatory requirements and you don't need to make quarterly results your sole focus. You can think long term.

yjamal2k1
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re: Dell going private in $24 billion deal
yjamal2k1   2/6/2013 9:55:01 AM
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The deal looks very lucarative for PEs and Mr. Dell and other parties - given the company has net cash of $5bn (debt of $9bn & Cash of $14bn. So with total purchase price of $24bn, they need to contribute ~19bn or slightly more, in form of debt and equity, of $2bn will come from MSFT. Given the fact, Dell generated FCF of $12bn in last 3 yrs (2010-12). With the av. FCF run rate of $2.5bn a year. PEs can leave firm with 24% return (on EV/EBITDA of 3.0x)after five years with minimal debt.

yalanand
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re: Dell going private in $24 billion deal
yalanand   2/6/2013 11:17:11 AM
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@dylan.mcgrat, I agree with you. Shareholders will benefit immensly from this but what about DELL ? How will this move help DELL ?

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