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Pierr Johnson

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  • Dell A Done Deal? Maybe: Emerging Contours Of The Buyout Suggest Investors Vote No [View article]
    Thank you for your comments. I am eager to tear into the 8-K and may have some additional financial details soon.

    Breakup fees are fairly common and effectively increase the mount of capital a competing bidder needs to finance to win the deal. To the degree the buyout group has borne costs in negotiating the deal, some fees are justified. But the main intent is to increase the threshold for competing bids. (Not a pretty business!)
    Feb 12 02:45 PM | Likes Like |Link to Comment
  • Dell A Done Deal? Maybe: Emerging Contours Of The Buyout Suggest Investors Vote No [View article]
    Yes, to the founder go the perks! It is a good thing you bought when you did. Besides Michael Dell, only those who caught the bottom will do well with this transaction. Congrats!
    Feb 12 02:35 PM | Likes Like |Link to Comment
  • Some Thoughts On The Dell Buyout, Microsoft's Involvement And The PC Market [View article]
    Thank you for the insightful response! It strikes me that, with the departure of Dave Johnson (head of their Strategy effort), the move to go private is an end in itself and not part of a large, fully considered strategy to address the company’s deficiencies. And, assuming they can even assemble the capital to close the deal, hugely excessive debt will indeed hinder the company’s ability to develop and execute a strategy. Even the loosest covenants will lay claim to cash flows for a significant interval. And, yes, Private Equity investors often require up front returns of one sort or another. So I appreciate your points a great deal

    I believe Microsoft’s involvement is defensive in many ways, just as in many respects the Surface offering is. The simple fact of the matter is that both HP and Dell wavered initially in confronting the challenges Tablets impose on PCs, especially consumer PCs. HP is back on board, to judge from its Analyst Day presentation. Dell may well be running from its problems when focus is most required. Yes, they are doing something with Tablets. But is not that the proper focus, rather than some massive buyout? Again, thanks for your comments
    Feb 1 12:13 PM | 1 Like Like |Link to Comment
  • Some Thoughts On The Dell Buyout, Microsoft's Involvement And The PC Market [View article]
    Thank you for your comments. Yes, with Lenovo and other aggressive players in the market, it is tough indeed. I agree that Microsoft would likely want to avoid the PC hardware business model. And it would certainly muck up their channel with conflict. Still, I do see the potential this year for some interesting changes in PCs with the various hybrids and tablets that are coming in the market. It wasn't clear to me that the present PC makers were up to the task. I am pretty sure this is what prompted MSFT to develop the Surface RT and Pro. Still, there seem to be some fairly interesting products in the pipeline that may or may not find success.
    Jan 31 03:45 PM | Likes Like |Link to Comment
  • Some Thoughts On The Dell Buyout, Microsoft's Involvement And The PC Market [View article]
    Thank you for bringing this up. This is a thread I have been meaning to trace for a while and the link is a great place to start. While PCs no longer seem to possess differentiation, with the emergence of Tablets, Ultrabooks and hybrids, there is actually room (for a change) for some interesting innovation this year. Of course, this USB-based device is especially interesting! Again thanks
    Jan 31 03:32 PM | Likes Like |Link to Comment
  • Some Thoughts On The Dell Buyout, Microsoft's Involvement And The PC Market [View article]
    Thank you for your comment, to which others agree. I agree that MSFT feels the need to direct development of the PC, especially in this dynamic market. Still, I do not believe they would want to own the manufacturing assets, given the weak margins associated with the model. It would complicate things with other customers as well. Also, it is so easy to outsource manufacturing. Still, you have a point. Actually, there is one well known commentator who feels that if MSFT unified the Platform with really elegant devices, it could truly compete against Apple.
    Jan 31 03:27 PM | Likes Like |Link to Comment
  • Some Thoughts On The Dell Buyout, Microsoft's Involvement And The PC Market [View article]
    Thank you for your comment. Consumer PCs have been a issue for some years, in my view. Their Corporate offering seems to be a core asset. And like HP they derive buying power with Intel and others across the Server and PC offering. So it may be hard to disaggregate a business to sell, in many ways. (HP's dilemma as well.)

    I agree that the Surface is a new thrust for MSFT. Still, I am not sure they would want the business model that comes with ownership of these assets. It is so easy to outsource this to Asian entities that find the paltry returns (and massive scale) attractive. Still, as you suggest, all cards have to be on the table, don't they?

    Thanks again
    Jan 31 03:21 PM | Likes Like |Link to Comment
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