Dell Corp.

DELL Corporation
1. History and Background
DELL is an American company, currently the third largest computer manufacturer in the world behind Lenovo and Hewlett-Packard. Its headquarters is based in Round Rock in the state of Texas. In 1984, aged 19 years old, Michael Dell founded the company PC’s Limited with $1000 (the minimum required in Texas). He was soon making huge profits and its introduction in 1988 to the stock market raised $30 million and increased its capitalization to $85 million.
In 1999, it became the largest PC manufacturer worldwide. If DELL is best known for the PC that they design, manufacture and sell to individuals and professionals, it is also present on the markets of enterprise servers, backup systems and data storage and specific equipment to computer networks. The online sales of custom computers made the success of DELL.
In 2002, DELL lost its “largest PC manufacturer” title, taken by HP (thanks to the merge with Compaq).
In 2004, Kevin Rollins (former COO) became CEO but the results were not improving. In 2007, Michael Dell was back as CEO and wanted to make the company do a new turn with Dell 2.0. The company continuously bought several other companies in strategic technology sectors (Datacenters, cloud, IT services…) for a diversification of its assets.
2. What was the recent strategic decision regarding corporate structure ?
On February 5th 2013, DELL announced its intention to leave the market price to shelter financial markets. The company will be acquired by its founder Michael Dell, through a 24.4 Billion Leveraged Buy Out with financial support from Microsoft ($ 2 billion) and investment fund Silver Lake. This LBO is the largest in the Technology market ever.
3. Pro's and Con's of the decision ?
Michael Dell’s decision to make the company private has several advantages and drawbacks. On the one hand, the Buy Out can reduce the cost of financial services. Indeed, financial communication and regulations for public...