Comments on: A Dell Family Reunion: Ticket $165M http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/ The Business of Technology Sat, 22 Nov 2008 07:46:06 +0000 http://wordpress.org/?v=MU hourly 1 By: On the Mark » Valentines Day 2008 - It’s a Family Affair http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861451 On the Mark » Valentines Day 2008 - It’s a Family Affair Thu, 14 Feb 2008 14:22:50 +0000 http://gigaom.com/?p=11481#comment-861451 <p>[...]  Stacey Higgenbotham of Gigaom writes “When you’re Michael Dell, the money isn’t everything, but helping a brother get rid of a 10-year-old drag on the portfolio might count as a favor. But MessageOne fits with Dell’s efforts to offer more managed services, so sometimes a little nepotism isn’t all bad” [...]</p> [...]  Stacey Higgenbotham of Gigaom writes “When you’re Michael Dell, the money isn’t everything, but helping a brother get rid of a 10-year-old drag on the portfolio might count as a favor. But MessageOne fits with Dell’s efforts to offer more managed services, so sometimes a little nepotism isn’t all bad” [...]

]]> By: Holger http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861231 Holger Wed, 13 Feb 2008 08:51:35 +0000 http://gigaom.com/?p=11481#comment-861231 <p>Let's just hope Adam Dell's next venture is not a Victoria Secret franchise that Michael will have to bail out and rationalize it by saying that Dell needs an edge in the retail space..</p> Let’s just hope Adam Dell’s next venture is not a Victoria Secret franchise that Michael will have to bail out and rationalize it by saying that Dell needs an edge in the retail space..

]]> By: stone http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861163 stone Wed, 13 Feb 2008 00:21:57 +0000 http://gigaom.com/?p=11481#comment-861163 <p>This one doesn't look good aside from how it actually happened.</p> This one doesn’t look good aside from how it actually happened.

]]> By: Andrew http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861124 Andrew Tue, 12 Feb 2008 22:06:23 +0000 http://gigaom.com/?p=11481#comment-861124 <ol> <li><p>Good of Michael and Susan to donate their share to charity.</p></li> <li><p>Although Impact was in for 10 years, some other VCs got in later and may have gotten a decent return.</p></li> <li><p>I believe at about 10 years the typical fund ends (see Alex's comment). I've heard of investment groups going around to funds to buy those 9-10 year companies that have value at a steep discount.</p></li> </ol>

  • Good of Michael and Susan to donate their share to charity.

  • Although Impact was in for 10 years, some other VCs got in later and may have gotten a decent return.

  • I believe at about 10 years the typical fund ends (see Alex’s comment). I’ve heard of investment groups going around to funds to buy those 9-10 year companies that have value at a steep discount.

    • ]]>         By: Embarrassed Stakeholder http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861103 Embarrassed Stakeholder Tue, 12 Feb 2008 20:20:53 +0000 http://gigaom.com/?p=11481#comment-861103 <p>This acquisition smells, and not in the good way. It goes to show how much the board is watching out for the stakeholders by allowing this thinly-veiled pay-off to the Dell family. Congratulations to Satin, Paul and Mike. I hope there aren't any more proverbial skeletons in the closet When the SEC and shareholder suits come a-knockin’.</p> This acquisition smells, and not in the good way. It goes to show how much the board is watching out for the stakeholders by allowing this thinly-veiled pay-off to the Dell family. Congratulations to Satin, Paul and Mike. I hope there aren’t any more proverbial skeletons in the closet When the SEC and shareholder suits come a-knockin’.

    ]]>         By: Stacey Higginbotham http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861082 Stacey Higginbotham Tue, 12 Feb 2008 18:46:59 +0000 http://gigaom.com/?p=11481#comment-861082 <p>Alex, there is a ton of math invovled in figuring out venture returns for a single exit and the entire fund, but at a basic level if we assume the purchase price is the same, an earlier exit is better than a later one because it gets the investor their cash more quickly and without possible dilution. Obviously, the longer a firm waits to exit, the bigger they hope the exit will be. As for ten years, most VCs investing when M1 started aimed for an exit within four to seven years.</p> Alex, there is a ton of math invovled in figuring out venture returns for a single exit and the entire fund, but at a basic level if we assume the purchase price is the same, an earlier exit is better than a later one because it gets the investor their cash more quickly and without possible dilution. Obviously, the longer a firm waits to exit, the bigger they hope the exit will be. As for ten years, most VCs investing when M1 started aimed for an exit within four to seven years.

    ]]>         By: Alex http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861061 Alex Tue, 12 Feb 2008 17:16:10 +0000 http://gigaom.com/?p=11481#comment-861061 <p>Stacey, yet, another well written post. But, whether the investment took 2 years or ten years, I'm sure they are happy for the exit (pay off). Though I believe the life of the venture funds is ten years, right?.</p> <p>This acquisition lines up well with the recent partnership of Fonality. I think it's pretty clear where Dell is heading.</p> Stacey, yet, another well written post. But, whether the investment took 2 years or ten years, I’m sure they are happy for the exit (pay off). Though I believe the life of the venture funds is ten years, right?.

    This acquisition lines up well with the recent partnership of Fonality. I think it’s pretty clear where Dell is heading.

    ]]>         By: Stacey Higginbotham http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861044 Stacey Higginbotham Tue, 12 Feb 2008 16:15:13 +0000 http://gigaom.com/?p=11481#comment-861044 <p>I have covered M1 for years and really think it's a good business, but looking at it from a venture investor's perspective, M1 has taken a long time to exit. That is what I meant by saying it was a drag on the portfolio.</p> I have covered M1 for years and really think it’s a good business, but looking at it from a venture investor’s perspective, M1 has taken a long time to exit. That is what I meant by saying it was a drag on the portfolio.

    ]]>         By: JohnP@Dell http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861042 JohnP@Dell Tue, 12 Feb 2008 16:07:47 +0000 http://gigaom.com/?p=11481#comment-861042 <p>Hi Stacey -- You’re accurate to say that the acquisition is a good fit for Dell. But, you’re off the mark with the inference about MessageOne’s standing. The company is the fastest-growing technology company in Texas in late 2007, according to Deloitte, and is the leader in this space with market credibility as an industry-standard platform and a marquee list of customers and key channel partnerships. What’s more, MessageOne has a demonstrated ability to scale and globalize.</p> <p>Dell researched several companies and business models. Based on our offerings and Services strategy, we chose the Saas model and determined that MessageOne offered the best fit for Dell.</p> Hi Stacey — You’re accurate to say that the acquisition is a good fit for Dell. But, you’re off the mark with the inference about MessageOne’s standing. The company is the fastest-growing technology company in Texas in late 2007, according to Deloitte, and is the leader in this space with market credibility as an industry-standard platform and a marquee list of customers and key channel partnerships. What’s more, MessageOne has a demonstrated ability to scale and globalize.

    Dell researched several companies and business models. Based on our offerings and Services strategy, we chose the Saas model and determined that MessageOne offered the best fit for Dell.

    ]]>         By: Paul http://gigaom.com/2008/02/12/a-dell-family-reunion-ticket-165m/#comment-861040 Paul Tue, 12 Feb 2008 16:00:30 +0000 http://gigaom.com/?p=11481#comment-861040 <p>It would be a lot easier for Dell to give his brother $45 million. He has the money, and shareholder concerns (even lawsuits) might be more expensive. I'd give him the benefit of the doubt on this. Not like investing in 23andout, or whatever that genetic screening firm's name is.</p> It would be a lot easier for Dell to give his brother $45 million. He has the money, and shareholder concerns (even lawsuits) might be more expensive. I’d give him the benefit of the doubt on this. Not like investing in 23andout, or whatever that genetic screening firm’s name is.

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