On Dell Going Private

Nathan Ingraham, writing for The Verge:

Dell has struggled in recent years to maintain its position in the PC industry, losing more than a third of its value in 2012. By going private, however, the company won't have to deal with quarter-to-quarter scrutiny from shareholders as it attempts to turn things around.

At first, I thought it sounded odd that Dell was going private. It's not the sort of thing you see everyday. On further inspection, it actually makes a lot of sense.

In today's 'quarter-to-quarter' obsessed market, investors can make loopy decisions with how they rate a stock (for the best example of this, see Apple's recent stock-related drama). For many companies, the pressure from investors to hit certain quarterly numbers can lead to ruin in the long term by placing short term gains over the best interests of the company. By going private, Dell can focus on creating a solid foundation for the company's future instead of catering to the whims of investors that are looking to make a quick buck.