The Reason for Dell Privatization

(Source:http://www.xbitlabs.com/news/other/display/20131030235010_Michael_Dell_and_Silver_Lake_Complete_Privatization_of_Dell.html)

Why are the companies like Twitter eager to be listed but Dell just did the opposite thing? In my opinion, it is because that there will be a great change in Dell.

To start with, why do the CEO want to privatize this company? The direct answer is that the stock price was so low that CEO wanted to buy it and it was high enough for the share holder to sell the shares, but what is the real reason for the CEO to do it? Or we can change this question to another one: what can Dell get from privatization. I think it is the stability and flexibility for a change. The CEO wanted to make sure that any decisions he would make in the future would not affect the whole asset.

Here comes to another problem: why does Dell need a change? First of all, the revenue of Dell has been keeping declining recently. What’s more, it is because of the big picture. Here is a table about the PC market of Europe.Gartner UK PC sales Q3 2013

According to the table, the whole PC market has been declining. At the same time, Dell is focusing on PC. This corporation has been suffering a lot from this declining.

In conclusion, the desperate demand to change forced the progress of the privatization.

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