Dell (NASDAQ:DELL) is said to be trying to go private. Rumor-mongers say the company is talking to private equity firms about a buyout. The Street likes what it hears, it seems.
In IT Blogwatch, bloggers ponder what it all means for the PC market.
Your humble blogwatcher curated these bloggy bits for your entertainment.
Reporting the rumors, Serena Saitto and Jeffrey McCracken:
Dell...is in buyout talks...two people with knowledge of the matter said. ... A deal could be announced as soon as this week. ... Several large banks have been contacted about financing an offer.
Taking the company private could help Dell...accelerate efforts to revive growth...without quarter-by-quarter scrutiny from public shareholders...as consumers shun PCs in favor of tablets and smartphones. MORE
Adding more meat, Arik Hesseldahl notes the buying on the rumor:
Shares of computer and IT company Dell are soaring. ... [They] rose nearly 14 percent by 2:20 pm ET. ... Dell has been making a significant shift away from the personal computer business...toward enterprise hardware, software and services. ... Investors are getting impatient.
A go-private deal would be relatively easy to pull off. ... Michael Dell owns [more than] 15 percent...of the outstanding equity in the company. ...much will hinge on how much...the company is worth.
Then again, now that the news is out and the shares have popped, the urgency might wear off. MORE
And Joey Devilla was one of many to channel this obligatory schadenfreude:
I’m not sure...what taking Dell private would do. Would it let them take corrective actions that...might make shareholders balk?
it’s almost my duty...to repeat Michael Dell’s infamous 1997 quote about Apple: “What would I do? I’d shut it down and give the money back to the shareholders.” MORE
But a puzzled Timothy Prickett-Morgan runs the numbers, coming up confused:
if you wanted to pay Dell shareholders a premium over even Friday's closing stock price, you would have to come up with a serious pile of cash. ...borrowing from Wall Street and disappointing them is cheaper than going into hock over your head.
Maybe Dell should merge with Samsung...and stop making bankers and private equity firms rich. MORE
Meanwhile, Preston Gralla sees the context to Dell's situation:
PC sales dropped 4.9%...says a new report by Gartner. ...the report concludes: The days of PC dominance are done. ... Tablets will be people's main computing devices. MORE