Sign in with
Sign up | Sign in

Dell Announces $24 Billion Deal to Go Private

By - Source: Dell | B 16 comments

The last couple of weeks have been fraught with rumors regarding a Dell buyout. Word that Dell was looking to go private once more started doing the rounds in mid-January. More recent rumors pointed to sizable investments from Silver Lake and Microsoft as well as Michael Dell himself. Bloomberg this morning reported that the Dell board met last night to vote on the deal, and it seems all went according to plan, as Dell has just announced a $24 billion deal to go private.

Dell said in a statement today that shareholders would receive $13.65 in cash for each share of Dell common stock as part of the transaction, which is valued at $24.4 billion and financed by CEO and founder Michael Dell and Silver Lake. The deal represents a 25 percent increase on the Dell's closing share price of $10.88 on January 11 (January 11 being the day rumors of the buyout first hit the web). Though the company is barely mentioned in the release, Microsoft did contribute to the financing for this deal and Dell confirmed that Redmond put forth a $2 billion loan.

"I believe this transaction will open an exciting new chapter for Dell, our customers and team members. We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise," Dell CEO Michael Dell said in a statement today.

"Dell has made solid progress executing this strategy over the past four years, but we recognize that it will still take more time, investment and patience, and I believe our efforts will be better supported by partnering with Silver Lake in our shared vision. I am committed to this journey and I have put a substantial amount of my own capital at risk together with Silver Lake, a world-class investor with an outstanding reputation. We are committed to delivering an unmatched customer experience and excited to pursue the path ahead."

Dell's board approved the merger agreement unanimously when it came time to vote on the deal. Dell says Michael Dell recused himself from all board discussions and from the vote regarding the transaction. The buyout is still subject to the usual regulatory approvals but is expected to close before the end of the second quarter of Dell’s FY2014.

Contact Us for News Tips, Corrections and Feedback                 

Discuss
Ask a Category Expert

Create a new thread in the News comments forum about this subject

Example: Notebook, Android, SSD hard drive

This thread is closed for comments
Top Comments
  • 10 Hide
    nieur , February 5, 2013 1:38 PM
    I think it will allow company to make brave decisions
Other Comments
  • 10 Hide
    nieur , February 5, 2013 1:38 PM
    I think it will allow company to make brave decisions
  • 5 Hide
    xpeh , February 5, 2013 1:41 PM
    lol. Silver Like
  • Display all 16 comments.
  • 7 Hide
    p05esto , February 5, 2013 1:51 PM
    Dell servers are among the best and their Precison workstation laptops are not too shabby either. I've never had a problem with Dell service (just the opposite). So overall, as far as PC vendors go who else is better, who else provides good enterprise hardware? Maybe HP, but they have their own problems which seem worse in my opinion.
  • 0 Hide
    warezme , February 5, 2013 2:12 PM
    Microsoft? I have to admit that would be a good fit for them.
  • 4 Hide
    john15v16 , February 5, 2013 2:15 PM
    Way to go dell! Good form!
  • 2 Hide
    RealBeast , February 5, 2013 2:35 PM
    Seems like a much better investment for Microsoft than most of their misadventures. :) 
  • 2 Hide
    ojas , February 5, 2013 3:28 PM
    There was just so much "Dell" in that article...

    p05estoDell servers are among the best and their Precison workstation laptops are not too shabby either. I've never had a problem with Dell service (just the opposite). So overall, as far as PC vendors go who else is better, who else provides good enterprise hardware? Maybe HP, but they have their own problems which seem worse in my opinion.

    Dell's consumer PCs/Laptops are horribly over-priced.
  • 2 Hide
    internetlad , February 5, 2013 4:08 PM
    ojasThere was just so much "Dell" in that article...Dell's consumer PCs/Laptops are horribly over-priced.


    Don't get me started on their enthusiast products. 3000 bucks for a tower I could build for 1200.

    The only good thing about dell's consumer laptops is you can get an el cheapo for ~300 bucks, so when your brat kid sits on it and breaks the screen, you throw it out and buy a new one.
  • 4 Hide
    kingssman , February 5, 2013 4:36 PM
    nieurI think it will allow company to make brave decisions


    This is the part I look forward to. They have a solid enterprise model that produces profit and keeps the company operating in the black. By going private, they can be unshackled by the hindrance of shareholders, and instead able to invest billions into new tech and other business routes that would on paper cause them to be less profitable for one quarter.

    Without the obsession of wall street demands or subject to knee-jerk reaction in the trading market, they can concentrate on tangible profits and investments of the company and not be at the mercy of sensationalist stock market shares.
  • 4 Hide
    mbreslin1954 , February 5, 2013 4:44 PM
    _^_ Exactly! They can be relieved of short-term thinking, worrying about what Wall Street thinks the next quarter results should be.
  • 3 Hide
    JamesSneed , February 5, 2013 4:49 PM
    Quote:
    I think it will allow company to make brave decisions



    Not only brave decisions but choices that have long term returns which is something that can't happen when your a public company. Hopefully they focus on quality like when they first started and less on the bottom line.
  • -5 Hide
    Anonymous , February 5, 2013 5:36 PM
    Hahhhaahhaahha Metro will take over the world now! YAAAAAAAAAAYYYYYYYYYY METRO!! Boo to Windows 7 and Linux! God bless you Metro!
  • -3 Hide
    susyque747 , February 5, 2013 8:09 PM
    Nice to see Dell go back to private, bad to see Mr. Dell take money from Satan, aka Microsoft.
  • -3 Hide
    susyque747 , February 5, 2013 8:10 PM
    nieurI think it will allow company to make brave decisions

    Yeah, don't you mean what ever Dell's new master Microsoft says.
  • 1 Hide
    dalethepcman , February 5, 2013 9:07 PM
    Dell has made some interesting products, but jumping on the cellular bandwagon was not a good fit for them. They have made the right move though, as HP's stability as a company has been up for debate ever since the "we are selling our PC department" slip up last year.

    I am glad one of the big OEM's will still be around in a few years without having to go the way of Gateway (who used to make the best pc's imo.)
  • 0 Hide
    melvis72 , February 6, 2013 8:37 AM
    Now only if they would fix the horrible customer service.