Michael Dell, Chairman and CEO of Dell. Image used under Flickr CCLi. Photo from Oracle Photos Flickr Stream.
Back in the 90′s Steve Jobs had just returned to save Apple, which was fighting for its life. Michael Dell was asked at the time what he would do if he were in Jobs’ place. He replied, ”I’d shut it down and give the money back to the shareholders.”
Later, someone asked Jobs about Dell’s comment at a full-company meeting. Steve Jobs said: ”Fuck Michael Dell.”
Indeed. Apple’s sky-rocket success is the exact polar opposite of Dell’s decline in the last ten years.
Dan Lyons, editor-in-chief of RedWrite has an astute article about the latest news from Dell: The company has gone “private” with a leveraged buyout valued at $24.4 billion. And as if to make things worse, the deal includes a $2 billion loan from Microsoft.
The irony is simply too good: Dell is giving the money back to its shareholders and going private. This is the start of the death spiral for Dell, which has become more and more irrelevant as time has passed.
“Deals like this are where big companies go to die. Michael Dell has gone to hell. He’s now in bed with a bunch of ruthless private equity guys whose role in this world is not to build things, but to take them apart and sell the pieces. They’re corporate chop shops. “
Read the full article here.