INVESTORS MAY TAKE COMPUTERLAND PUBLIC
  The investor group that has agreed to
  buy &lt;Computerland Corp> will likely take the leading personal
  computer retailer public or sell it to other investors,
  industry analysts said.
      "Now's a good time," said Joe Levy of International Data
  Corp. "The personal computer industry has bottomed out and is
  on the way up again," he said.
      Earlier today, closely held Computerland, the largest PC
  retailing chain in the country, said it agreed to be bought by
  an investor group led by E.M. Warburg Pincus and Co, New York.
      Neither Computerland, which is 96 pct owned by its founder,
  William H. Millard, nor E.M. Warburg, a money management and
  venture capital firm, would disclose the value of the
  transaction.
      Analysts estimated that Computerland, whose 800 stores
  generated 1.4 billion dlrs in sales last year, would fetch  150
  mln dlrs to 250 mln dlrs. Computerland franchise owners pay
  royalties averaging 5.9 pct to the parent company.
      Officials for E.M. Warburg referred all questions to
  Computerland. Computerland officials could not immediately be
  reached for comment.
      E.M. Warburg currently manages 1.5 billion dlrs in venture
  capital funds, and its past investments have included Mattel
  Inc &lt;MAT> and the Ingersoll newspaper chain. It is also a money
  manager, with 3.5 billion dlrs under management.
     Although the PC retailers are benefitting from the strong
  upturn in PC sales, analysts said Computerland must make key
  changes if it is to fend off advances from rivals like
  Businessland Inc &lt;BUSL.O> and Tandy Corp's &lt;TAN> Radio Shack
  stores. "The name of the game now is outbound sales forces,
  customer service and customer support," said Levy of
  International Data.
  
      Relations between Computerland and its franchise owners
  have mellowed recently after Millard was forced to give up
  managment control of the company in 1985.
      Ed Faber, who took over as chairman and chief executive
  officer, revamped the company's royalty plan, which help quell
  much of the franchisee dissent.
  

