As various groups fight over the rights to acquire Dell (UNKNOWN:DELL.DL), investors are left wondering if the business can reinvent itself well enough to re-emerge as a stronger, better prospect for a second IPO at some point in the future.
A lot depends on cloud computing, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video. Dell has cited the prospects of a deteriorating PC market in pitching a lowball offer to take the company private even as it invests to expand in some areas. The latest: a deal to acquire Enstratius for an undisclosed sum.
Enstratius should allow Dell to better position itself against large-scale peers such as Hewlett-Packard (NYSE:HPQ) in designing, deploying, and managing computing environments that operate concurrently onsite and in the cloud. And that's good. But as a practical matter, the deal shouldn't matter for today's investors hoping for a better buyout price.
Do you agree? Please watch the video to get Tim's full take, and then let us know whether you would buy, sell, or short Dell stock at current prices.
Fool contributor Tim Beyers owns shares of International Business Machines and Rackspace Hosting. The Motley Fool recommends Amazon.com and Rackspace Hosting. The Motley Fool owns shares of Amazon.com and International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.