Michael Dell Tries Again To Justify His $24.4 Billion Plan to Buy Back his Company

Maximum PC Staff

Dell tries one last time to explain why a private Dell is the company’s best chance of success

Dell has struggled to maintain market share against the emerging flood of low cost mobile devices, and CEO Michael Dell wants shareholders to know that he alone holds the key to saving the company he founded. In a June 21st presentation to investors , Dell laid out what he believes will be the company’s only chance of long-term success. Not surprisingly, it includes a pretty heavy shift from consumers to the enterprise, a plan that he claims is in jeopardy if the company remains public.

Those looking for evidence need look no further than the company’s most recent quarterly results . In Q1 2013 Dell’s earnings dropped a mere 2 percent, however revenues fell a whopping 79% vs. the prior year. At the time Dell claimed it was making strategic investments to help shore up the enterprise solutions division, and Michael Dell claims much more is needed. According to his presentation: “Full implementation of the steps needed to position the Company for the long term is likely to have an even greater negative impact on earnings in the near term than what we have already seen.”

Dell seems to understand that shareholders are unlikely to tolerate quarter after quarter of disappointing earnings, and that the status-quo would be devastating for the company’s long term prospects. Dell hopes to drum up additional support before their July 18th investor meeting, but failing this he will still stand behind the PC maker as its CEO.

"I founded the company and will continue, as I have for the last 29 years, to try to make Dell the best company I can," he wrote. "I will also oppose the kind of imprudent leveraged recapitalization that has been suggested by certain other parties." He didn’t outright say it, but Carl Icahn was clearly the “other parties” he was referring to.

MSD Presentation - Final [6!20!13] by Arik Hesseldahl

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