Dell Buys Back his Namesake for $24.4 Billion

It feels like the rumor mill concerning the possible sale of Dell has been churning for the better part of a year.  Well, it’s over; and there’s plenty of butter –about $24.4 billion worth. Yesterday, Dell announced that it was being purchased and will be taken private by its founder and CEO, Michael Dell, with a little help from his friends (Silver Lake Capital, Microsoft, and a few others). Michael Dell will remain the company’s CEO.

It hasn’t been smooth sailing for Dell the last few years. Although the company continues to do an excellent job producing hardware, its competition has turned out more integrated solutions promoting “cloud ” and other related services. Even Apple has managed to take a bite out of the Dell.

“The implication of going private is that Dell is planning radical changes to its strategy and product roadmap,” analyst firm Ovum stated. “While the company might come out of this transition stronger with a product lineup that better meets the needs of businesses and public sector organizations, there will be uncertainty as to what products and services stay, get strengthened, or get eliminated.” pcAmerica CEO David Gosman said that “he thinks Dell will likely concentrate on more lucrative areas—cloud computing, storage, software—and less on their core PC and peripheral business.”

Not that my bet is worthy of any consideration, but if you read between the lines and notice what’s not being said, it’s hard to believe that Dell isn’t putting the finishing touches on an innovative mobile solutions strategy. It’s anyone’s guess.

Source: Vertical Systems Reseller (article by G. Koroneos) and Dell PA

—Tom Finn

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