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Carl Icahn gives up fight to take control of Dell

By Shawn Knight · 6 replies
Sep 9, 2013
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  1. Activist investor Carl Icahn has given up his fight to take control of Dell. It puts an end to a 14-month-long episode that saw Icahn battle with founder and CEO Michael Dell over the fate of one of the world’s...

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  2. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    Hmm I thought it was michael dell that wanted to buy his company back not carl icahn xD
  3. ikesmasher

    ikesmasher TS Evangelist Posts: 3,050   +1,384

    Same here. This article is confusing me.
  4. Chazz

    Chazz TS Evangelist Posts: 679   +75

    Michael Dell wants to buy his company back and go private. One of his share holders didn't like the idea and offered a competing bid. He doesn't like the plans Dell has set out. The article is stating that the investor is backing out and leaving Dell's offer as the only offer.
  5. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    Ah ok xD Well tbh if the revenue for dell really is $50billion then he should easily be able to pay the loans back in a year right? Also in a business sense it kinda seems worth it to keep it private specially if your wanting to grow the company to become massive.

    $50billion all to yourself seems like a big amount of cash! having that split to investors must hurt haha
  6. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 3,160   +1,413

    Just because Dell makes $50bln in revenue every year doesn't mean they have $50 bln to spend. Those computers they sell cost money for parts and assembly. Last year Dell made $57bln, but it cost them almost $45 bln to do it. After other expenses and taxes they were left with only $2.3 bln left over.

    Making a company private doesn't help it grow, it helps them not have to turn profits quarter after quarter to keep shareholders happy. A private company is more able to focus on the long term and accept losses for a few years while they change gears. Perhaps Dell is going to move into mobile or consulting and it'll take a few years to make it profitable. Going private will mean he won't have bad press and unhappy shareholders while he makes it work.

    The PC market is on the way down. Dell knows it and is probably going private to allow the company to move into something else before they fade away. Sure, there's nothing wrong with just being a smaller PC maker, but he's probably got a lot of employees that he can't keep if they only sell half as many PCs.

    If a company wants to get big fast, one of the things it can do is go public. Going public raises a lot of money for the company as it's equity is sold off to investors.
  7. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 8,647   +3,286

    I wonder what his new catch phrase will be? "Yes Icahn" comes to mind. :)

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