In terms of operations, the management of unlisted companies will have more autonomy and privacy.

It is understandable that DELL shareholders are not optimistic about the company's prospects: 1. The PC market is in a state of zero growth or even shrinking under the pressure of mobile consumer products, especially Apple and Android products.

2. In the PC market, competitive pressure from Lenovo and HP has caused DELL to continue to lose market share.

3. As far as DELL itself is concerned, it has not been able to effectively develop other product markets other than PCs.

In terms of product innovation, DELL lags behind its main competitors.

Dell himself and his partners are optimistic about DELL's prospects, which may be mainly due to the following reasons: 1. They believe that there is room for improvement in the company's business strategy, such as developing new products, entering new markets, and launching low-profit markets.

It is speculated that Dell will reduce its low-margin PC business and shift it to software, cloud, enterprise services, and data center businesses.

2. Believe that there is room for improvement in the company's specific management, such as reorganizing inefficient departments, optimizing processes, and significantly reducing layoffs.

3. The company has strategic value to third parties, especially Microsoft.

Microsoft urgently needs the PC manufacturer, which still ranks third in the global market, to support the Windows market.

Question 4. Where did Dell get the money to buy DELL?

Dell himself holds about 15% of DELL shares.

The remaining funding came from: - Private equity funds: Silver Fox, MSD Capital.

These private equity funds and Dell himself will become shareholders of the reorganized DELL.

- Microsoft invests $2 billion in the form of loans.

- Bank loans: Bank of America (Merrill Lynch), Barclays, UBS, RBC.

By the way: There are several types of arbitrage methods, or exit strategies, after a company is privatized: 1. Spin off the company.

This method is generally only applicable when the company's existing assets are undervalued due to unreasonable utilization.

2. Re-IPO.

The company was reorganized and reorganized, with improved efficiency and re-listed.

3. Sell to strategic investors.

The so-called strategic investor means that another company's business has a complementary relationship with that company, and there is a synergistic effect.

4. Sell to the next financial investor.

This situation probably means that privatization has failed.

5. Enjoy cash flow.