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Brian White, Topeka Capital Markets analyst, weighs in on Dell’s buyout deal and Microsoft acting as a lender in the deal.
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Well Dell reaching a deal to go private after weeks of negotiations the price -- 24 point four billion dollars but shares well barely moving higher so.
Is this the deal to shareholders who have really been waiting for.
To -- -- capital markets analyst Brian -- joining me now on the phone Brian.
At the end of the day was this the best option for Dell clearly falling behind in the PC market the PC market itself always has been on the decline for a number of years now was this the only -- best option.
-- the best option you know investors.
Gave Dell a valuation of three times earnings.
Back -- -- in November after the earnings report.
It would have been far fetched to get this -- -- valuation.
Did you sure period guitars so I think it is a good deal.
Now what about the share price thirteen 65.
Michael Dell local school BP a majority of an -- private equity firms silver lake and there are those that say it's -- -- in fact Barron's Magazine argues the company's -- -- Maybe as much as -- five bucks a share.
Well you know what -- -- humorous about.
All of these.
Concerned that this is undervalued is that again I would go back in November when the stock was at about 860.
Before it takes three -- gash.
Now this valuation is about five point six times -- cash.
If people are crying over it I think it's a fair valuation needed more people didn't want to -- but it -- good valuation would've went under nine dollars.
This is a better deal.
Why would accept it.
Not surprisingly I guess HP Hewlett-Packard issuing a statement today taking a dig -- -- -- -- basically saying that Dell's ability to invest in new products and services will be cut.
By its debt burden is this something to that point.
I think -- I would look at that it's really sour grapes.
I think HP would -- -- -- private.
But it impossible they already have a big debt -- a lot of their markets are declining it's too big.
So I think they're they're green with envy they look at that Dell taking -- -- private so I at the end of the day I think what -- while.
-- to do.
-- get written all rid of a lot of the burden of being a public company -- that Europe bureaucracy that comes to a debt and the overhang of that that -- much more flexible nimble company.
Are they get outside and focused on cloud computing that the future for gal and that's where they wanna bring it.
Yes they need to catch up to very quickly -- we're almost out of time what's the end game for Michael Dell here problem.
Could -- be leaving stepping down sooner rather than later look at the private stakeholders bring in a new CEO.
Well he obviously have to perform -- CEO and chairman of the stuff Friday company.
But I I do date basis is stepped back.
Right yup you got that -- second act I think it is Dell's second act first was PT.
If you want to make it work -- enterprise in the cloud I think this is adopt.
Rigidity wanted to can do what Steve Jobs did you can think very popular indeed that are I don't -- Thank you so much for joining us we appreciate it okay thanks a lot --
