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We'll Use Dell to Help Identify Microsoft, HP at the Morgue

Stocks in this article: DELL HPQ MSFT BBRY AAPL RIMM ORCL IBM CSCO

NEW YORK ( TheStreet) -- Of all the articles on the $24.4 billion deal for Dell (DELL - Get Report), TheStreet's Antoine Gara wrote the best one.

It's the best because he approached the story from a unique perspective. He brought up something novel, something that actually matters in the bigger picture. He didn't plant himself in the middle of the media circle (insert popular spice for chicken here) by jockeying for position to get the story. That would have been a waste of all of our time.


Beyond Gara's astute observation vis-a-vis Federal Reserve policy, this Dell deal represents little more than another signpost on the dirt path to death for swaths of entire industries and several specific companies. If it wasn't for that, this would be a non-story.

Sure, the numbers are the biggest we've seen in some time, but that, in and of itself, doesn't make this meaningful news.

It's shocking to me that we lead with this Dell news or a dead-cat bounce in the artist formerly known as RIM, BlackBerry (BBRY), yet we let innovation at Apple (AAPL) bubble beneath the surface. That's because we're mired in this cycle of everything Apple does is bad, therefore when they do things that are good we must ignore them.

Here are the takeaways from the Dell "news."

Number One: You'll likely never hear from Dell again. It's not like it has been part of your water cooler, dinner or post-romp chats for quite some time anyway, but now the company is out of sight and out of mind for good. IBM (IBM), Oracle (ORCL) and Cisco Systems (CSCO) will make Dell rue the day.

Michael Dell had zero options. His company has little, if any, chance of competing in any space right now. No company in its right mind would buy it. Taking Dell private then becomes the corporate equivalent of allowing it die (without dignity, though) in hospice.


Number Two: You can explain it a dozen different ways, but it will never make sense that Microsoft (MSFT) put its money -- even if it wasn't all that much of it -- into this sinking ship.

Shareholders should be calling for Steve Ballmer's head. While Microsoft should have its head down and vision tunneled, it's screwing around with this tangential stuff. Grade A example of why Ballmer is an awful CEO.

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