Dell plans to buy something big
THE DARK SATANIC RUMOUR MILL reckons tinman Michael Dell is about ready to open his cheque book and buy a significantly sized company in the next few months.
Deep throats who claim to have spoken to someone who knows Dell's chief financial officer, Brian Gladden, or at least met him in a pub once, told the Wall Street Journal that Dell has his eye on a data-storage or tech-services business.
Despite the company making less profit and axing staff, Dell has enough dosh in his piggie bank, up to $9 billion - more if he looks between the sofa cushions.
The Journal noted that Dell recently hired David Johnson, a high-profile mergers and acquisition executive from rival IBM although Biggish Blue is insisting he has nothing to do with buying anything.
However, if you have a lot of cash and want to expand in the future, now is the time to buy companies when their share price is as cheap as chips. µ
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Recent issue of Businessweek has list of six potential targets: Palm, Motorola's phone unit, Dallas-based Affiliated Computer Services, BMC Software, Symantec, and EMC, although EMC would most likely be a merger due to its size ($25.1b).
Ole Mikey's done pretty good since his days living in a University of Texas at Austin dorm room. Now, if only he had gone to Texas A&M instead... how does President Dell sound?
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Maybe a semiconductor company while they're going cheap...
My bet is on twitter
It would make more sense for them to go after something that would be easy to integrate, open new revenue streams and enhance or create a new line of mobile products. My bet would be Nvidia.
Would be big news if that happened, how much is nVidia worth atm - $7 billion?
AMD would be a much better purchase for Dell. It would cost less and offer far more then what nVidia offers.
Imagine what Dell could do with it's own CPU, GPU, Chipset company ;)
Yea. Dell buying either Nvidia or AMD/ATI. That's exactly what Dell is going to do even though the article itself states that the CFO says their company is interested in a "data-storage or tech-services business." Does Nvidia or AMD/ATI fall under those two businesses? Yea you're definitely on-target. ha!
I never said Dell would buy either. I was simply replying to menschect's comment and saying that IF nVidia was being considered, then AMD would be a better purchase. I never said that is what they would be doing ;)
As for what "Data Store or tech service" I think they would buy, if I was a gambling man, all bets would be on EMC :)
I wasnt speculating on what company the article or the cfo was talking about. I was merely saying that buying a chipset GPU/CPU company with a hand in every major market category would be a good idea.
Dell wants into the handheld space. Palm needs money. Win-win.
Nuff said, buy BMC and you get storage, services and software all at once.