1. g33kphr33k's Avatar
    There we go, Dell just saved themselves the issues of having to answer to shareholders which 9 times out of 10 is a companies downfall when they are trying to recover: Michael Dell wins $25bn buyout to take Dell private- The Inquirer

    If they take themselves private, they have a good change at recovering!
    09-12-13 03:17 PM
  2. howarmat's Avatar
    well we cant say this "worked" for Dell yet. I also think that the shareholders got very little out of the deal.
    09-12-13 03:23 PM
  3. g33kphr33k's Avatar
    Who cares about the share holders? Okay, that's a little unfair, as long as they break even though they can't grumble too much.

    If BBRY privatised itself, they wouldn't be under so much pressure to make massive profit, as long as they earned enough to stay a float they'd still be in the market and not having to worry too much. Then they could crack on with getting stuff done and not worrying so much about quarterly reports.
    09-12-13 03:31 PM
  4. fromlid's Avatar
    So where do you think the $25 billion came from? Investors you don't have to answer to? Private investors are, if anything, require even better returns. These are investors and institutions for which stocks and bonds aren't good enough. If anything can be cut, they will cut it. If anything can be sold, they will.
    Roo Zilla likes this.
    09-12-13 03:36 PM
  5. Highcroft's Avatar
    So where do you think the $25 billion came from? Investors you don't have to answer to? Private investors are, if anything, require even better returns. These are investors and institutions for which stocks and bonds aren't good enough. If anything can be cut, they will cut it. If anything can be sold, they will.
    Exactly, I don't understand why everyone thinks that going private would be the greatest thing to ever happen to Blackberry. That $3 billion in the bank? That's all gone now because they'll have to use that to help pay off shareholders. Blackberry will run off whatever budget that the equity group that takes them private is willing to give them and like the stock market, the equity group will absolutely want a ROI on whatever money they put in. Going private is a desperation move for most companies and while there are a few success stories, it can also end very badly. If it was that easy, wouldn't every struggling company do it? For those in America who payed attention to election news, the term "vulture capitalist" was thrown around a lot to describe Romney's Bain Capital. And guess what name is being thrown around as a bidder to take Blackberry private?
    Roo Zilla likes this.
    09-12-13 04:32 PM
  6. Moonbase0ne's Avatar
    If BlackBerry did go private, would they change the way they have been doing things the last few years? Will they all of a sudden market their new phones, OS, and features more? Will they suddenly make phones that people actually Want to buy? Will they come up with a must have feature that will sell more phones? Will they work on changing the bad image that the name BlackBerry now has? Will they work on getting the word out that BlackBerry is NOT going out of business? Will they try to loose the (stupid) "Tools Not Toys" and "Get Things Done" slogans/image?

    Those are the real questions.
    09-12-13 05:08 PM
  7. sinsin07's Avatar
    There we go, Dell just saved themselves the issues of having to answer to shareholders which 9 times out of 10 is a companies downfall when they are trying to recover: Michael Dell wins $25bn buyout to take Dell private- The Inquirer

    If they take themselves private, they have a good change at recovering!
    CompUSA went private. They don't exist anymore.

    This is only a first step. It has yet to proven if they will be successful.
    09-12-13 06:16 PM
  8. Roo Zilla's Avatar
    There we go, Dell just saved themselves the issues of having to answer to shareholders which 9 times out of 10 is a companies downfall when they are trying to recover:
    I'm guessing you don't know what stocks are....... The people who bought the company by buying the outstanding shares...... guess what they are? They are.......... wait for it.......... shareholders.
    09-12-13 07:02 PM
  9. Roo Zilla's Avatar
    Who cares about the share holders? Okay, that's a little unfair, as long as they break even though they can't grumble too much.
    The shareholders care about the shareholders. If a certain percentage of them don't agree with any buyout offer, there is no buyout. I'm guessing you've never heard of things like corp raiders and greenmail. Guys who buy up chunks of a company in play in hopes of holding out to get a better price. Guess what corp raiders are? They are...... wait for it...... shareholders. Corp raiders..... they're notorious for wanting huge returns immediately and if they're not forth coming, they'll break up a company and sell it for parts in a heart beat and move on to the next thing.
    09-12-13 07:05 PM
  10. CairnsRock's Avatar
    One big thing that DELL has that bbry doesn't is Michael Dell.

    I mean a true visionary genius with a proven track record. Plus, his employees are 100% bought into his vision and leadership.
    09-12-13 07:28 PM
  11. tmb2013's Avatar
    Who cares about the share holders? Okay, that's a little unfair, as long as they break even though they can't grumble too much.

    If BBRY privatised itself, they wouldn't be under so much pressure to make massive profit, as long as they earned enough to stay a float they'd still be in the market and not having to worry too much. Then they could crack on with getting stuff done and not worrying so much about quarterly reports.
    Privatized itself?

    Where will the money come from to buy back all of the share float? That is how Blackberry would "privatize itself" by buying back all of the shares.

    They probably have little to no cash right now, so they would have to raise the money in a debt deal. LBO's rarely work out well. Then there is the working capital they would need. So they start off with a great big ball of high rate debt hanging over the deal and PE investors looking for early returns which can only be obtained by starting to sell off assets.

    I really don't think some of the people posting these pipe dreams have a clue how this actually works.
    CairnsRock likes this.
    09-12-13 11:37 PM

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