backtop


Print 9 comment(s) - last by inperfectdarkn.. on Oct 31 at 4:02 AM

The deal is valued at about $24.9 billion

It's official: Dell has gone private.

Dell founder, Chairman and CEO Michael Dell completed the bid to take his company private today along with investment firm Silver Lake Partners. Dell shares will no longer be traded on the stock exchange as of market close today. 

“Today, Dell enters an exciting new chapter as a private enterprise,” said Michael Dell. “Our 110,000 team members worldwide are 100 percent focused on our customers and aggressively executing our long-term strategy for their benefit.” 

The deal, which is valued at about $24.9 billion, will give Dell shareholders a total of $13.88 per share ($13.75 in cash for each share they own, and a cash dividend of 13 cents per share). 

The deal was originally approved September 12 at a Dell shareholders meeting. The approval gives Michael Dell and Silver Lake Partners approximately 75 percent of the company. 

 
So what does Dell's future hold now? Michael Dell said he'll focus on expanding the company's presence in emerging marketsand invest in tablets, PCs and virtual computing. Dell will continue to be headquartered in Round Rock, Texas.

Michael Dell is taking the company private for good reason. It lost one-third of its value last year alone. PC sales are slow since PC demand can't keep up with that of mobile devices, and Dell has to hear about its financial failures from shareholders each quarter.

In May, the company reported a 79 percent decline in profits, with net income falling to $130 million from $635 million compared to the same quarter of 2012. This is mainly due to a shrinking PC market.


Hopefully the company can pull itself back together outside of the public's eye. 



Source: Dell



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Very interested to see what happens...
By vortmax2 on 10/30/2013 11:34:27 AM , Rating: 5
...to a company that goes private. It's a rare occurrence, but I'm sure many companies are closely watching. I applaud Michael Dell for going against the grain and hope it works out well for his company.




RE: Very interested to see what happens...
By Cheesew1z69 on 10/30/2013 12:42:00 PM , Rating: 2
From Private, to Public, back to Private, not many company go that route. I think Best Buy founder is trying to take it back Private again as well but I don't think he is doing so well in that bid.


RE: Very interested to see what happens...
By kmmatney on 10/30/2013 1:40:12 PM , Rating: 3
My company went that route. It is much better now that we are private again. Our products suffered tremendously when we had to do things to please our shareholders, instead of just trying to make good products. We are now more profitable than ever, and it wouldn't have happened had we stayed public.


By Cheesew1z69 on 10/30/2013 1:45:48 PM , Rating: 2
quote:
Our products suffered tremendously when we had to do things to please our shareholders
I believe it...


By inperfectdarkness on 10/31/2013 4:02:40 AM , Rating: 3
This.

One of the best things that can happen to a company is staying private. Putting the SHAREHOLDERS ahead of the CUSTOMERS is not a fantastic business model for increasing customer satifaction. Home Depot knows all about this (F**k you, Bob Nardelli).

Keeping a company private means that the profits stay within the company, rather than being doled out to shareholders. Granted, it doesn't do investors any favors--and may make it significantly harder (for your average person) to save for retirement..if enough businesses go/stay private. That said, a private corporation can likely offer significantly better benefits to its workers than a public one. This may mean even *gasp* viable pension plans. Not that I think Dell is headed that way though...


Good news for Dell
By milktea on 10/30/2013 1:06:38 AM , Rating: 2
Let's see if Dell could make a come back without the influence of the public shareholders.

Lenovo is watching closely.




RE: Good news for Dell
By Michael Hatamoto on 10/30/2013 1:17:27 AM , Rating: 2
Dell's support to VARs has increased over the past two quarters, so there certainly is time for the company to turn itself around now. If they continue to help partners with deal reg and reduce the layers of bureaucracy, there is definite potential.


RE: Good news for Dell
By tng on 10/30/2013 9:53:06 AM , Rating: 2
Not sure if it was the public shareholders or just the Board of Directors. I have seen several companies that have been destroyed by the decisions of the board.

Not saying the Dell wants a bunch of yes men on the board, but sometimes to move forward you have to have people that are willing to let you take your ideas and run with them.


You know...
By MikeDiction on 10/30/13, Rating: -1
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki