Sign in with
Sign up | Sign in

Dell Officially Goes Private, Delists from Nasdaq

By - Source: Dell | B 21 comments
Tags :

With the buyback complete, Dell will delist from the Nasdaq this afternoon and once more be a privately-owned company.

Back in September, Dell announced that it would be going private after shareholders approved a $25 billion deal offered by founder Michael Dell and Silver Lake Partners. Today, that deal closed, which means Dell is officially a privately-owned company once more. The company announced this morning that the 'go-private transaction' was complete. Dell will delist from the Nasdaq after close-of-trading 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."

Under the terms of the agreed upon deal, stockholders will receive $13.75 per share of common stock plus a cash dividend of $0.13 per share for a total of $13.88 per share. In addition, there's also a guaranteed third quarter dividend of $0.08 per share that will be paid at or before closing. The total transaction is valued at approximately $24.9 billion.

Michael Dell last month said that Dell will continue to expand its enterprise solutions and services business. Right now, the company's bread and butter is PC sales, but it's hoping to shift some of its focus away from the PC and mobile markets and focus more on the enterprise segment. Going private gives Dell the room to shake things up and make some really bold moves without shareholder scrutiny.

Dell was founded in 1984 while Michael Dell was a student the University of Texas. The company was run out of his dorm room and sold PCs built from stock parts directly to consumers.

Follow Jane McEntegart @JaneMcEntegart. Follow us @tomshardware, on Facebook and on Google+.

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
  • 8 Hide
    Darkerson , October 29, 2013 4:38 PM
    Good luck to Michael and the company. Second chances dont happen often.
  • 4 Hide
    opmopadop , October 29, 2013 5:16 PM
    Lets hope this sets a precedence on how companies can fix their shit up instead of taking the 'bankruptcy' approach.

    Good luck Michael.
  • 4 Hide
    ioconnor , October 29, 2013 5:45 PM
    I will now consider buying from Dell again.
  • Display all 21 comments.
  • 1 Hide
    tolham , October 29, 2013 6:00 PM
    great news. I look forward to seeing what Dell comes up with. if they really want to shake things up, they could take a stab at a steambox.
  • 2 Hide
    memadmax , October 29, 2013 6:10 PM
    Dude, I'm still not gettin a Dell...

  • 0 Hide
    knightmike , October 29, 2013 6:56 PM
    I wish Newegg would follow suit.
  • 0 Hide
    Martell1977 , October 29, 2013 7:50 PM
    Good luck Mr. Dell, IMO the first step should be to improve quality and design. There is no good reason for a desktop mid-tower to weigh 40lbs+. Second step should be better options and value.

    I'll be watching what they do, but I haven't recommended Dell for an OEM machine in many years, maybe that will change, but I wont hold my breath.
  • -7 Hide
    FloKid , October 29, 2013 10:02 PM
    Rich Bitch
  • 4 Hide
    spectrewind , October 29, 2013 11:01 PM
    faggot needs to die

    Your account on THG should die. And you should be prevented from generating a new one.
  • -1 Hide
    spectrewind , October 29, 2013 11:07 PM
    Dell USED to produce good hardware. Used to...

    I'm not sure whether or not going public, followed by answering to short term demands of investors killed their quality, but that's what it seems like. Although, I think every company suffers from this problem (I AM NOT A BUSINESS MAJOR, just what I see). Hopefully going private can cure this.

    Would I buy anything Dell makes now? NO. If they can turn the ship around and show their unwillingness to cut corners and make a quality product at a decent price, then that will earn them their name back on the table to a lot a companies looking for solid turn-key computer solutions.
  • -1 Hide
    theLiminator , October 29, 2013 11:29 PM
    I've always been of the opinion that their workstation class hardware has been quite reliable. Even their consumer stuff is decent. The main thing with dell is that they're less competitive with price, and often their hardware is hard to do repairs on yourself.
  • -1 Hide
    Vorador2 , October 30, 2013 2:01 AM
    Dunno about Dell's consumer line, but the enterprise class hardware is usually reliable, and the professional support is really good.
  • -1 Hide
    CaedenV , October 30, 2013 4:19 AM
    I would never suggest a Dell computer for an individual, but their business units were so good 10 years ago, and I really hope that they get their act together and standardize the industry again. Let's see an army of NUC sized devices that you can slap on the back of a nice Dell monitor for business use which are dirt cheap! Businesses would love that model so much better than the AIO units being pumped out by most companies!
  • 1 Hide
    DragonChase , October 30, 2013 8:21 AM
    They can start by making their products LOOK NICE FOR ONCE!
  • 1 Hide
    Avro Arrow , October 30, 2013 9:32 AM
    I wouldn't buy a Dell then and I wouldn't buy a Dell now. The only "brand-in-a-box" desktop I ever owned was an IBM PC in 1985, (well my dad and of course, back then, . My first computer after that was a 286-16 that I built myself in 1988 and I haven't looked back since. All of these "manufacturers" are famous for filling people's minds with more marketing BS than technology. How else could an i3 with a GT 240 be called a "gaming monster"? I also remember BTX-spec Dell computers and Dells with no PCI-Express slots. Thanks but no thanks. I'll stick to building my own and for friends & family, these corporate geniuses who make money screwing people can look elsewhere for suckers as far as I'm concerned. I worked at Tiger Direct and I'll tell you that as far as desktops are concerned, all the "manufacturers" (I say that because they all buy prebuilt PCs from China and throw their names on them) have at least one flaw in their machines that prevent them from becoming useful. The most common flaw - the 250-300W PSU. I can't tell you how many times I've seen these companies doing everything that they could to keep everything proprietary in an attempt to eliminate real competiton but Dell using the BTX standard really took the cake. Even when it came to buying a laptop, Acer consistently was a better value than Dell. Dude, I'm never getting a Dell.
  • 1 Hide
    FloKid , October 30, 2013 10:50 AM
    Sorry i yealed at the Gabillionare, I was really depressed yesterday. Now I am ok and I shouldn't have posted that, because people like that probably have to work really hard for so much moneys and always worry about loosing it or being stolen. My apologies. I don't usually troll like that on forums, it only makes me look evil. I wish I'd never do that again, so horrible. Sorry sorry, forgive me forum fwwwwiiiieeeends.
  • 0 Hide
    chicofehr , October 30, 2013 11:18 AM
    I've owned 2 of their 30" 2560x1600 monitors and loved them. Waiting for thier 4k version now. Wishing for them to bring down prices a bit though.
  • 0 Hide
    GreaseMonkey_62 , October 30, 2013 11:37 AM
    Does this mean Dell will sell off Alienware, so it can become a decent manufacturer of gaming systems?
  • 0 Hide
    Tuishimi , October 30, 2013 12:31 PM
    Well, I wish them success even tho' I generally build my own... Actually the last PC I bought was from Indelible Blue and was an OS / 2 machine - When I say PC I mean non-Apple machine. I have bought Apple computers in addition to building my own Windows / Linux PCs.
  • 0 Hide
    Duckhunt , November 1, 2013 3:12 AM
    Dell will go private and be forgotten. The key problem for Dell is that they just assemble things.That is all they are.
Display more comments