Hi Kemble! Have you seen this quote from Tom Meredith? :)Leigh
``This is an extraordinary opportunity for Dell to continue to evolve in providing great value to its customers and shareholders,' said Meredith. ``For all of our successes, we believe these are the early days of our most exciting period yet, and Dell Ventures will play a key role in the next era of Dell's evolution and growth.'
...and this quote from your buddy Ashok Kumar! The latest article from Bloomberg follows!
Kumar said he doesn't think Dell has missed out on investing in start-up companies. ``They're late relative to some of their established peers, but not late to the opportunities,' Kumar said.
quote.bloomberg.com
Dell Computer Says It Has $2 Bln in Unrealized Gains (Update1)
By Molly Williams
(Adds analyst comments, details on Intel and Microsoft).
Round Rock, Texas, March 29 (Bloomberg) -- Dell Computer
Corp., the No. 1 direct seller of personal computers, said it has
unrealized gains of more than $2 billion from investments in
companies that have gone public.
The announcement comes as Dell puts more emphasis on its unit
that invests in other companies. Dell Ventures Group, formed a
year ago, will expand investment activities to include services
like strategy development, financing assistance and access to
market research. Dell Ventures has invested more than $700 million
in more than 90 companies including Red Hat Inc., Sina.com and
StorageNetworks Inc.
``They're taking a cue from Intel and Microsoft,' said Ashok
Kumar, an analyst at U.S. Bancorp Piper Jaffray, who rates Dell a
``strong buy.' ``This isn't a traditional venture capital fund.
They want to set it up in such a way that it's more of an
incubator.'
Intel Corp.'s original venture-capital investment of
$2 billion has grown into an $8 billion portfolio. Intel invested
in companies making software and hardware that will help spur the
growth of the Internet, creating more demand for Intel's faster
generation of processors. Intel's portfolio of more than 350
companies includes stakes in Ariba Inc. and Red Hat Software Inc.
Microsoft
Microsoft has invested in Internet companies such as NaviSite
Inc., a Web-site hosting company, and Yam Digital Technology Co.
of Taiwan, a Chinese Internet portal.
Dell Ventures had previously invested in later-stage
companies that had other investors or a revenue-generating
business. Now, the group may invest in people with an idea, or
just a business plan. Kumar said he doesn't think Dell has missed
out on investing in start-up companies.
``They're late relative to some of their established peers,
but not late to the opportunities,' Kumar said.
Dell Ventures is owned by Dell Computer. Michael Dell, who
founded Dell Computer in his college dorm room, has a separate
venture group called MSD Capital that he created with his own
money to make investments in companies.
Separately, Dell said Chief Financial Officer Tom Meredith
took a new position running Dell Ventures Group. He will be
replaced by James Schneider, 47, who was senior vice president of
finance.
Shares in the Round Rock, Texas-based company fell 2 1/16 to
53 13/16. |
