Oct

13

CEO Michael Dell said his Round Rock-based company is “rapidly developing” merger expertise and plans to make more deals similar to the $3.9 billion acquisition of Perot Systems — MSN Money news report

When I read this I was bothered by the phrase "rapidly developing merger expertise." Like somebody is trying to convince somebody else that "we have a new expertise," or essentially, a new business we are entering. The "merger" business. Which is harder to run on negative capital than the making-PCs business.

Victor Niederhoffer notes:

Dell discussing company acquisition strategy, pulling out all stops. When that's your big suit, you're in trouble. No shots left.

James Sogi writes from Hawaii:

Dell bought a hotel in Maui at the top of the market and it is bankrupt now. "[R]apidly developing expertise" or fooled by randomness?


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2 Comments so far

  1. david higgs on October 14, 2009 1:30 am

    rumor is __ell moving out of round rock for el pa$o where the labor is in pesos… reminds me how people get it right once but not a second time… like granville, prechter et al.

  2. William Brauer on October 15, 2009 12:30 pm

    Where they once had the cachet as a domestic manufacturer, my new Dell laptop is made in Malaysia. They sure weren’t going to set the PC world on fire with proprietary hardware so perhaps diversification via mergers is their best bet.

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