Michael Dell: Repairing a legacy?
But as of 2012's fourth quarter, Dell's share of the global PC market had slipped to just above 10 percent from 12.5 percent a year earlier as its shipments dived 20 percent, according to research house IDC.
That the company will go private is not necessarily a new idea; Michael Dell told an investor conference in June 2010 he had considered it before.
But by pulling the trigger now, the 47-year-old billionaire can focus on reversing its fortunes by concentrating on higher-margin corporate IT and services - borrowing a page from IBM. He will do so free from the distractions of running a publicly traded company.
That's still no small task for a company that built its name on customized computers but whose star has waned, and now wants to go up against larger rivals like HP and IBM.
Dell, who has quietly built a highly successful investment firm even as the fortunes of his namesake company have waned, is upping the ante. He will put up more of his own money, contributing his 16 percent share of Dell's equity to the deal along with cash from his private investment firm MSD Capital.
"This is an opportunity for Michael Dell to be a little more flexible managing the company. That doesn't take away from the fact they will have challenges in the PC market like they did before," said FBN
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