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September 12, 2013

Dell, as in Michael, is 100 Percent Back as Firm Goes Private

By Doug Barney, TMCnet Editor at Large

"Just when I thought I was out, they pull me back in,” Michael Corleone said in 1990. Michael Dell (News - Alert) seemed to say much the same thing today, as he won the battle to take full control of his progeny and namesake, Dell Inc.



Michael Dell’s plan to go private is now fully on as investors gave their okay. Nothing like a little stock price premium to move a few minds, eh? Yup, the buyout price was an offer made that top shareholders couldn’t refuse.

I think this is amazing news. Tech companies need a 100-percent dedicated tech leader. Oracle (News - Alert) still has Ellison, and Google still has all the founding Googlers. But Microsoft no longer has Bill Gates’ full attention and Apple has lost its muse Steve Jobs (News - Alert). When companies lose tech leadership, they can lose their way.

Dell’s best bet is to put itself back in the full hands of Michael Dell. And think of the infomercial potential? (Half joking, folks, only half joking.)

So enough of this reporter’s analysis – let’s give a few details. First, Dell started in a college dorm room and is now a quarter-century old (guess who is the star of class reunions?).

Second, Michael Dell, among other stakeholders, has been pushing hard to take control out of the hands of the public and back into private owners. He and his allies won.

Times are a changing, and I believe Mr. Dell wants total control to adapt to all the new goings on. That shows a rather intense motivation.

Microsoft (News - Alert) and Apple have proven that a totally invested, technically gifted (creatively at least) leader is the best way to go.

And if Michael Dell isn’t committed, why did he spend eight months to get his company back?

Is the now reappointed Dell godfather happy? His public statements say so. “I am pleased with this outcome,” Dell (as in Michael) said. “As a private enterprise, with a strong private-equity partner, we’ll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals.”

Time for a Test

Michael Dell started his company and guided it to great success. But he hasn’t had the recent imprint or success of many of his rivals, so his vision is a bit of a question mark.

This is the true test. Is Dell up to the caliber of Gates or Jobs?

I can’t answer that. But the future of Dell Inc. will. And I wish Michael the best of luck!


Edited by Alisen Downey
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