What’s the benefit of Dell going private?


Dell shareholders overwhelmingly voted in favor of taking Dell private. What’s the advantage of doing this? Won’t it make it harder for the company to raise capital by issuing additional stock?

Tags: Dell
Topic: Business
Answer this Question


2 total
Vote Up (14)

For one, it frees up the company from worrying about people like Carl Ichan trying to take over the company. Aside from that, it also allows the company to take a longer term view, and plan accordingly. As a publically traded company, they are essentially on a 3 month cycle where they face punishment in the stock market  if they don’t meet earnings expectations, never mind if there is a good reason for it.  This move could gain the company much need flexability.

Vote Up (11)

I don't think it will matter much at all. The PC business is in decline, and Dell missed the mobile boat. Going private isn't going to help prosper in a rapidly shrinking PC market.

Ask a question

Join Now or Sign In to ask a question.
Will we see anything sillier than a Kickstarter campaign to make potato salad? Wait, don’t answer that
The spy accusations between the US and China are screwing up the deal.
If you gave up cable TV in favor of Aereo, get ready to make it up to your cable guy
It seems like the selection of content accessible via our streaming devices improves every week.
New research into the reasons for software compilation errors at Google helps to reveal ways to improve developer productivity
Amazon’s new smartphone can track your head movements; what could go wrong?
Thanks to Chinese regulators, Microsoft's acquisition of Nokia may have cost more than just the $7.2 billion sticker price.
When two big companies go at it publicly, we all win
Your social media activity can reveal more about you than you think
Want to see how that coffee machine looks on your counter before you buy it? A crop of startups see a business in helping you visualize.
Join us: