Dell Board Approves $24.9B Buyout by Michael Dell
Early Thursday morning, the Dell board approved a deal for Michael Dell and Silver Lake Partners to take Dell private. The $24.9 billion deal between the groups will amount to $13.75 in cash per share plus a $0.13 cash dividend. Dell made a statement saying “serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals.” Dell expects the deal to finalize Q3 of Dell’s 2014 fiscal year, and then the company will be truly private again.
A majority of investors had opposed this deal, with an attempt to even take the company away from Dell. Details of the vote have not been announced yet, but we’ll keep updating the piece if any important information comes out. What’s unclear now is what changes Michael will make to the company without shareholders to hold him back. Dell has been struggling to find a foothold in the consumer market recently, with attempts to enter the mobile field with tablets and smartphones. Many speculate that it will become an enterprise serving company, and leave the consumer market completely.
That move would be risky, but without shareholders Michael could do it if he felt that was best for the company. Tell us what you think about Dell going private, and if this will help save the troubled company.