With the bidding war heating up for Dell as the computer maker looks to go private, CNBC's Jim Cramer said Wednesday that with fading prospects for the PC market, Michael Dell should give up his bid and move on.
"Michael Dell, my advice to you: Leave, start a whole new company. Compete against your namesake," Cramer said on "Squawk on the Street."
"Steve Jobs did it," he added.
Cramer has been arguing that the final bid for Dell will bring with it a winner's curse, where whoever is left holding the company will be worse off. The winners in this situation, he said, will be the ones who lose the bidding war.
(Read More: Blackstone, Icahn Set up 3-Way Battle to Buy Dell)
"What can they do in a private market that they can't do in a public one?" Cramer asked on Wednesday. "What are they saying will boost the cash flow as a private company? What are they saying they can do? There is no secret sauce."
"It's so out of sync with what I'm seeing everywhere else," he added. "I just sit here and say, that business goes down every day and maybe they can change everything when they're private but in the end they are a PC company with some server business, levered to government spending, levered to university spending. I do not want that business."
On Tuesday's episode of Mad Money, Cramer said he was baffled that a stock trading at $10 per share three months ago is trading at such a premium. "Margins are down. Cash flow from operations is down. Earnings are down and revenues are down. I've seen this happen a couple of times in my career where it was obvious that everyone had lost their sense. To me this just seems insane."
(Read More: Dell Bidding War – Cramer's Ultimate Winner)