Michael Dell, Mark Zuckerberg of his time, strikes deal to turn it around
Hailed as a young genius, he created the inexpensive, made-to-order personal computer in his University of Texas dorm room and sold it straight to the public. In the 1980s and `90s, his face appeared on magazine covers, and well before he turned 40, he was a college dropout-turned-billionaire CEO, ranked alongside Bill Gates and Steve Jobs.
But that was a long time ago in the fast-moving world of high technology. Now the PC is getting eclipsed by smartphones and tablet computers, and Dell is struggling to save his company - and his legacy.
Tuesday's announcement that Michael Dell and the investment firm Silver Lake have struck a $24.4 billion deal to buy publicly traded Dell Inc. and take it private may well be the founder's last chance to recapture his former glory. The agreement will allow the company to attempt a turnaround without having to worry about pleasing Wall Street with its earnings.
For Michael Dell, 47, the attempt to retool the company he built is personal, said technology analyst Patrick Moorhead, who runs Moor Insights & Strategy.
"His name is on the logo and all the buildings. So he takes all of this very personally,'' Moorhead said. "This is a way for him to solidify the way people will look at him and remember him.''
Analysts said Dell Inc. will have to mine more profitable areas such as technology consulting and business software.
In a statement, Dell himself said little more
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