It is no secret that Michael Dell wants to buy out his company. The founder of Dell is one of the leading candidates to buy out the shares of Dell privately and obtain complete control. In collaboration with Silver Lake, Michael Dell has offered to pay around $24 billion for the company. The reason behind this is that he has a different vision for the company than the one currently being pursued. Being bogged down by investor pressure, he has to think in terms of profitability.
By buying the company, he would no longer have to worry about other parties. This would free him from the burden of being Michael Dell, founder of the No.3 PC maker in the world. It seems like exactly the approach he wants to take with the company as he made his plans for the future known to one and all. Perhaps the most significant of all is his commitments is to keep investing in the development of new PCs despite the market showing bleak future projections.
Ever since the smartphones and tablets came around, the demand for PCs has declined, eventually culminating in the handheld devices overtaking conventional computers. Still, Michael Dell is buoyed up for the future and wants to continue investing in new PCs and retaining his company’s share of the market. The market for PCs is the one where Dell has a major stake and gets most of its revenues from. So it is understandable why Michael Dell wants to sustain that position.
Also, he wants to make the company competitive in many countries across the world as well as developing a robust and qualified sales team. Plus, he also revealed his plans about consolidating Dell’s position in the tablet market. Currently, the company has been unable to make significant inroads in that market because of the intense competition already present there. By increasing the level of investment, Michael Dell may be able to revive the company’s fortunes.
Of course, all this requires a lot of money for investment. The $24.4 billion bid has been bolstered by a $2 billion loan from rival tech giant Microsoft. Now that the leading candidate for buying Dell, the Blackstone Group LLC, has backed out of the race, it seems the way is clear for Michael Dell and Silver Lake to buy the company. Only then would Michael Dell be able to stay true to his word and keep continuing to invest in the PC market.
[Image via electricliterature]