Way back in January of this year, Dell enquired about returning to being a private company and leaving the stock market for good. Originally, a part of the NASDAQ market, Dell’s CEO and founder, Michael Dell, stated that he will gain control along with Silver Lake Partners, to control Dell for the future.
Such moves will allow Dell to innovate and prove new designs much more quickly as the company no-longer needs to please shareholders. Finally, Dell won’t have the expectations of Wall Street hanging over them. Buying out of the market wasn’t easy, as it took some cash from Michael Dell himself and $2 billion of loans from Microsoft.
Today, Dell’s final $24.9 billion deal has been approved by Dell stockholders, who will be receiving $13.88 per share in cash.
“I am pleased with this outcome and am energized to continue building Dell into the industry’s leading provider of scalable, end-to-end technology solutions. As a private enterprise, with a strong private-equity partner, we’ll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals,” said by Michael Dell in his statement.
The deal was approved by all stockholders who held the majority of Dell’s shares. The decision does exclude shares held by Michael Dell, those in related family trusts, Dell’s Board of Directors, and certain members of its management team. Where does this deal finally leave Dell? Well, they’ve stated that Dell will remain a Windows-only shop. Having always been close partners with Microsoft, Microsoft’s loans just guarantee that that partnership continues. Unfortunately, as this is a hefty payout, Dell will need to perform layoffs but only to shrink the company by a small amount.
In my opinion, Dell’s decision is interesting. Such a large electronics company leaving the stock market shows that Dell doesn’t see high hopes for the future. Could it be the outrageous US debt? What I do know is that Dell has always been recommended by myself, as the products they provide meet my standards, and I am excited about what Michael Dell has in store for the future; that is if they still have enough money after this.
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1 Comment
I will say that its an interesting and brave decision. Lets wait and watch whats coming next innovation from Dell.