Dell’s $25 billion bid to go private has moved one step close to completion as a result of today’s announcement from the company. Dell announced via their own website that the company’s bid to go private in partnership with Silver Lake Partners has cleared regulatory hurdles that would prevent it from occurring. Less than three weeks ago, the company announced that based on its shareholders’ voting, the company’s bid to go private with Silver Lake Partners’ help would go forward towards regulatory approval.
Dell has been struggling to accomplish their deal since the announcement of the deal back in February. However, some investors like Carl Icahn have fought tooth and nail against it claiming that it was not in the shareholders’ best interest. Personally, I believe that Dell needs time to be a private company to execute on their own long term goals. There are a lot of very large tech companies that are privately owned and are still very successful. In fact, one might argue that privatization might be the best thing that ever happened to Dell, or any tech company for that matter.
If a tech company is privately owned they don’t have to disclose a lot of things, which can actually be a competitive advantage and they also have the flexibility of planning in spans of years rather than quarters. This kind of thinking can allow a company to invest in the future and to take more risk than they ever could have as a public company. Sure, being private has some of its own disadvantages, but the truth is that many Dell employees and industry insiders agree that Dell should go private. By the looks of it, Dell will most likely go private very soon (3Q FY14, this current calendar quarter) and hopefully we’ll see some forward thinking innovative products out of them shortly. Perhaps, even, a re-introduction into the smartphone market?