Tuesday, February 5, 2013

Snap Takeaways on Dell Going Private

- Deal priced at $13.65 and it was *gasp* accepted by the shareholders (at close to no premium). Der-ammmmmmnnnnn. That's pretty desperate. Somehow no one's very confident huh.

- Microsoft injecting $2bn: once again the technogiant is showing off its TMM syndrome. "Make fuckloads off Office and blow it away on stupid shit." -- Steve Ballmer

- MSFT investors need to sell, now.

- If anyone's hoping for any synergy after the injection, sorry. Buying $2bn of a $24bn company gets you 8.3%, or no influence.

- Dell already uses Microsoft products, btw!

- A private equity fund called Silver Lake threw in $1bn. Usually a private equity buys many startups with a lot of inertia for very little and hope one (or more) of them blossoms. They don't buy a dying ex-technogiant for a lot of money and hope it somehow magically turns around.

- Said private equity fund have probably never caught a falling knife.

 - AFAIK Dell is gonna worth a lot less in 5 years after PC market share in consumer space gets completely eaten up.

- AFAIK Michael Dell is smoking something very good.

- UNLESS he's planning to do a Steve Jobs.

- But maybe that's part of the effect of the smoking.

- Silver lining: now that Dell is private, they may do a lot of crazy shit that excite the niche market. Ubuntu tablet or sth. I don't know. I wouldn't know until I get what Michael Dell is smoking.

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