Dell Goes Public at $46 Dollars a Share

AlphaAtlas

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Reuters reports that Dell has officially gone public today, opening at around $46 a share and joining HP and other tech firms in the public markets. Dell has a rather complicated financial history, as after their initial IPO, Dell went private about 5 years ago, and ownership stakes in the company frequently changed hands during that time. Their investor portal hasn't been updated, and I can't find any shares on Schwab yet, but the class A stock price is listed if you Google "NYSE: DELL". Theoretically, if you want to own a slice of the PC maker, now you can.

The tracking stock was tied to an 81 percent economic stake in VMware and buying it back allowed Dell to bypass the traditional IPO process, which would likely have involved grilling by investors over Dell’s $52.7 billion debt pile. The company received the necessary shareholder approval for the deal in early December...Dell holds 17 percent of the global PC market share year-to-date, behind rival HP Inc's 23 percent and Lenovo Group Ltd's 21 percent share, according to data from Canalys.
 

jardows

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Fuck Dell, Dude.

Worst thing ever.. Now they answer to the shareholders, not the customers.
On the other side, they answered to the stakeholders, not the customers. A private corporation does not automatically detach itself from investors, and in some cases, can be more beholden to them. IIRC, a singel investment group was owning 30-40% of Private Dell. That means the company pretty much does what they want. May not be majority, but if that huge an investment partner backed out, you're done for. My understanding is being tied that closely to 3rd party investors is what spurred Michael Dell in going back public - rather take the chance on the open market than have to answer to one or two investment firms.
 

Galvin

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Thats the problem. Investors or stock holders can hurt the company. Because it becomes all about profit and not quality of the product
 

filip

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Fuck it I already bought a nice dell monitor, if the company goes to shit due to chasing profits for shareholders I'll just buy a monitor from a different company. It's not like dell makes the panels.
 

Nukester

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EVERY corporation answers to the shareholders, it's the whole point of a corporation. Bro you need to take a business class or two so you can keep up in this world.

THey don't when they are not public... DUDE
 

Nobu

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THey don't when they are not public... DUDE
If they are incorporated, then they have shareholders, whether they are public or not. They are required to listen to (though not necessarily follow) the requests of those shareholders as a matter of fact. Unincorporated companies are a different matter, but as Dell is incorporated, we need not discuss them.
 

Burticus

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I'm only interested in this from a vmware standpoint. But I don't have a truckload of cash laying around, so... yeah.
 

conscript

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Not for nothing guys, but I think alot of you have no idea what you're talking about. This was a great move for a $80B revenue company still outgrowing their competition. Right now at $46/share it's a steal too.

Bottom line, the reason Dell is market leader in almost every IT category, is because they spend more in R&D than their next 5 largest competitors combined. If anything, this move to public is going to strengthen that stance.
 

Frobozz

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Not for nothing guys, but I think alot of you have no idea what you're talking about. This was a great move for a $80B revenue company still outgrowing their competition. Right now at $46/share it's a steal too.

Bottom line, the reason Dell is market leader in almost every IT category, is because they spend more in R&D than their next 5 largest competitors combined. If anything, this move to public is going to strengthen that stance.
Admitted armature hour corporate & market arm chair observer here, so 'for what it's worth'... Dell was public and while not a dying company from my perspective, it started becoming less trend setting until Michael took it private again. Now we've seen several key storage acquisitions, stakes in VMware, top notch laptop, desktop and servers solutions presented. A lot of moving and shaking. Now, I know this process to go public again was all in the works while everyone was talking DOW 30k non-sarcastically, but the timing based on this week could completely crap on their parade. At the very least Tariff Man could tweet something at any moment to spook investors to flee tech for wealth preservation. That could lead Dell to do the typical things that make companies start turning toward 'meh' status for the sake of pumping share pricing. Layoffs, err... "finding efficiencies in personnel", scaling back R&D (It's just an expense anyway amirite?) reducing the quality of products, etc...

Not saying it'll happen, but I'd be nervous if I had immediate plans based around raising money from the market right now. ... Perhaps the bean counters have it all nailed down in the details. <repeat of my first sentence here> :D
 
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guitarslingerchris

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Not for nothing guys, but I think alot of you have no idea what you're talking about. This was a great move for a $80B revenue company still outgrowing their competition. Right now at $46/share it's a steal too.

Bottom line, the reason Dell is market leader in almost every IT category, is because they spend more in R&D than their next 5 largest competitors combined. If anything, this move to public is going to strengthen that stance.
Maybe you should talk to Equallogic about that whole spending in R&D thing.
 

Derangel

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THey don't when they are not public... DUDE

Ever heard of investors? Or people/companies buying an x% stake in a private company? Just because a company is not sold on the stock market does not mean they are 100% run and controlled by the board of directors. Tencent (a publicly traded company) owns 40% of Epic Games (a private company). This gives Tencent the power to nominate people to Epic's board of directors and gives them a lot of sway in terms of suggestions for the future of the company (though, supposedly, Epic's board is not required to follow their suggestions).

Private or public, most companies are beholden to more than just the consumer.
 

Derangel

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I am trying to think of one company that is beholden to the consumer that is not a MC.

Only thing I can think of would be like local utility co-ops that are kinda/sorta owned by the customers that use them. Don't think those really count anyway.
 

[Spectre]

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Only thing I can think of would be like local utility co-ops that are kinda/sorta owned by the customers that use them. Don't think those really count anyway.

That is what I was thinking ...a cooperative
 
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They had to go public they need to be able to find a way to pay down that 50 billion in debt from the leveraged buyout and crap. Selling shares to pay down debt is a good way to do that.
 

cyclone3d

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Well, they can't really screw up more than they have lately.

1. Latitude 7x70 laptops were plagued with faulty TPM chips.
2. They went from the glorious E-Dock to a couple iterations of a super-crappy and buggy Thunderbolt dock. And the cable was not changeable to the other side of the dock.. AND the Thunderbolt port was on the wrong side of the laptop to let the dock sit the proper way without having to have the dock cable make a 180 degree turn.
3. They have now gone to a couple super-crappy USB-C docks... can't even turn the laptops on without opening up the screen to hit the power button... uggghhh
 

Iratus

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Whole bunch of fail attached to that. I’d rather cheese grater my balls, better prospects for the future.
 

Uvaman2

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Dell is a great company? ... Everything I touched from them feels and looks shitty... Runs meh...
 

Comixbooks

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Smart invenstors dont' blame the company they invested. Kinda like wanting Zuck out of Facebook it's not going to happen.
 

Stimpy88

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Stupid, shortsighted decision, based on greed and short term gain. They will be firing hundreds, selling property and assets in a month or two, and complaining about low profits.
 

conscript

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Maybe you should talk to Equallogic about that whole spending in R&D thing.


The "R&D" thing is something that transferred over from the purchase of EMC. And why, when Michael purchased EMC, he treated it completely differently, actually leaving EMC, now Dell EMC, headquartered out of the old EMC office in MA, and moving servers and networking under their arm. Leaving Dell proper to focus on client devices (PC's, monitors, etc).

Admitted armature hour corporate & market arm chair observer here, so 'for what it's worth'... Dell was public and while not a dying company from my perspective, it started becoming less trend setting until Michael took it private again. Now we've seen several key storage acquisitions, stakes in VMware, top notch laptop, desktop and servers solutions presented. A lot of moving and shaking. Now, I know this process to go public again was all in the works while everyone was talking DOW 30k non-sarcastically, but the timing based on this week could completely crap on their parade. At the very least Tariff Man could tweet something at any moment to spook investors to flee tech for wealth preservation. That could lead Dell to do the typical things that make companies start turning toward 'meh' status for the sake of pumping share pricing. Layoffs, err... "finding efficiencies in personnel", scaling back R&D (It's just an expense anyway amirite?) reducing the quality of products, etc...

Not saying it'll happen, but I'd be nervous if I had immediate plans based around raising money from the market right now. ... Perhaps the bean counters have it all nailed down in the details. <repeat of my first sentence here> :D

The reason for moving public was largely influenced by Trump's tax changes. When Michael Dell and Silver Lake purchased EMC, they took on alot of interest bearing debt, that at the time was OK because they could write off alot of the interest expense. Trump changed that rule after the acquisition, and it was important after the fact to remove as much debt as possible.
 
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N4CR

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EVERY corporation answers to the shareholders, it's the whole point of a corporation. Bro you need to take a business class or two so you can keep up in this world.
Of course, but I feel they're trying to say that it's going to get even worse.
 
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