Dell Shareholders Approve Buyout By Founder Michael Dell, Partners
by: Andrew Schneider, September 12, 2013 10:09:00 am
The buyout will end Dell Incorporated’s twenty-five year history as a publicly traded company. Like other PC makers, Round Rock-based Dell has been hit hard in recent years by the continued shift away from desktops and laptops toward tablets and other mobile devices.
Jonathan Marino is senior editor with The Deal.
“The problems facing Dell are almost identical in a lot of ways to what’s facing the Lenovos and the Hewlett-Packards of the world. Hewlett-Packard is, in a lot of ways, I feel like possibly in even [a] worse position than Dell. They’ve had a very impressive run up in their stock price this year. They had a pretty substantial bounce back from a major accounting scandal within in the last twelve months. But now they’re at a point where they still have to realize some value for their shareholders.”
Hewlett-Packard maintains a sizable workforce at the former Compaq campus in Northwest Houston.
Michael Dell, who made the offer with a group of investors and lenders, has said he can turn Dell around. But he says the process will involve a painful realignment that will likely trim its earnings for another year or two. He says the turnaround will be easier to pull off away from Wall Street.