Quote of the Week – Going Private


September 26, 2013

We haven’t even gotten this one taken private yet. It’s way too soon to think about that… Right now, it’s great to be able to focus on our customers. We have good cash flows. The interest payments will be less than the annual expense that we had been paying for share repurchase and dividends. We like the opportunity to invest in R&D, in our own growth, hire more salespeople, and think about the business in a three-, five- and seven-year time frame.


Who said it: Michael Dell, Chairman of the Board and CEO of Dell in an interview with Arik Hesseldahl of AllThingsDigital


In Context: The quote is Michael Dell’s response to a question about taking Dell public again, which caused the soon- to-be majority owner (as the result of a private-equity backed buyout) to laugh and point out that Dell has not even been de-listed yet. This quote is interesting because it gives some insight into the advantages and costs of delisting. It is just one reason to go private. Blackberry is another tech company standing before a take private deal so it a relevant topic this week. Dell pointed that interest payments will be less than the annual expense for share repurchase and dividends, and he implies that being able to focus on the long term goals is not as easy when a company has publicly held stock. His opinion is that going private will also enable Dell to better focus on customers.


Where we found it: AllThingsDigital

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