LIVE: Dell’s Dependence on Go-Shop Bidding Process Leaves Egg on It’s Face
The private equity firm Blackstone Group has exited stage left, leaving Dell on stage with egg on its face. The flatlined bidding for Dell is a result of the board relying exclusively on a process known as a go-shop for how it ran its sale. Here is the gist: after a deal is announced, the go-shop allows the target company (in this case Dell) to shop around to see if there are any other bidders. Why on earth would the first bidder allow this you ask? What I deem an ‘outdated sales model’ is the short-answer. Go-shops were first used in private equity buyouts. The private equity firm would demand exclusive negotiations. Boards would agree to this exclusivity, but with the caveat that it gets a period of time when alternative bids could be solicited. The board wanted to make sure its company was being sold for the highest price possible, of course. The rest of the story for Dell ends with it continually stepping on new dance partners’ toes until there’s no one left to dance with.
On today’s Live NewsDesk Show with Kristin Feledy (see live stream below) we’ll be hearing from SiliconANGLE Founding Editor Mark ‘Rizzn’ Hopkins. What is a go-shop? Where did they get their first start? Do they work? What would you have done if you were Dell?
Image credit: Dealbook
A message from John Furrier, co-founder of SiliconANGLE:
Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.
- 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
- 11.4k+ theCUBE alumni — Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network
Are you an AWS customer? Support SiliconANGLE financially by buying your AWS services from our Marketplace portal page and links: https://siliconangle.com/aws-marketplace/
About SiliconANGLE Media
SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios — with flagship locations in Silicon Valley and the New York Stock Exchange — SiliconANGLE Media operates at the intersection of media, technology and AI.
Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.
