"Dell Inc. DELL +0.83% on Tuesday said it reached a deal to take itself private, in a $24.4 billion buyout that marks an unofficial end to the era when a handful of young entrepreneurs made PCs the dominant computing device."
"You've gotta get up and try try try" Dell is trying, but it hasn't being easy. Despite its efforts to turn itself around, Dell recognized that will take longer to come around. Dell's decision to go private is an attempt to restructure its business maintaining its value. In order words, being private is the security that a company can innovate, try new procedures and change core business without the fear of the impact of these decisions in the financial market. In addition Microsoft is one of the big investors of this buyout, which makes us think that maybe the technology industry will see something new coming from this partnership.
Source: http://online.wsj.com/article/SB10001424127887324900204578285582125381660.html?mod=WSJ_hpp_LEFTTopStories
This is an interesting article.... I will look forward to seeing how the company and its product line changes once it is privately held. I never thought about the fact that being a publicly traded company could stifle innovation and the company might be less likely to take risks that could lead to great innovation. When a company is publicly traded, shareholders are always watching for the first sign that the stock is losing value, that the company is losing money, etc- looking for a reason to dump the stock if they find a reason to...
ReplyDeleteIt is exactly that.. public companies are less encouraged to innovate or change their business structure.
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