Dell tries one last time to explain why a private Dell is the company’s best chance of success
Dell has struggled to maintain market share against the emerging flood of low cost mobile devices, and CEO Michael Dell wants shareholders to know that he alone holds the key to saving the company he founded. In a June 21st presentation to investors, Dell laid out what he believes will be the company’s only chance of long-term success. Not surprisingly, it includes a pretty heavy shift from consumers to the enterprise, a plan that he claims is in jeopardy if the company remains public.
Blames ‘uncertain’ Windows 8 adoption and ‘unexpected’ decline in Windows 7 enterprise upgrades
Beleaguered PC vendor Dell has recently been in the news mainly for CEO Michael Dell and Silver Lake Partners’ $24.4 billion ($13.65 per share) buyout offer and all the attendant drama. On Friday, came the latest chapter in the Dell buyout saga as the company filed a 274-page preliminary proxy statement with the U.S. Securities and Exchange Commission.
Carl Icahn wants Dell to pay investors $15.7 billion in special dividends.
The path to privatizing Dell may not be as quick and easy as Michael Dell anticipated. To recap, Michael Dell, with the help of private equity firm Silver Lake Management and a significant loan from Microsoft, hammered out an agreement with Dell's board of directors to acquire the company in a deal that would pay public shareholders $13.65 a share, ultimately valuing the deal at $24.4 billion. Over the past couple of weeks, some investors have spoken out in opposition of the deal, including Carl Icahn.
Rumors that Microsoft and Yahoo were back at the negotiation table have been floating around since April, but nobody held out much hope that a deal would ever be reached. After enduring nearly a year of roller coaster negotiations, even we started to lose interest in the back and forth chest thumping between the two tech giants.
When the acquisition deal fell through last November Microsoft stockholders let out a collective sigh of relief, while Yahoo shareholders watched their fortunes fade rather quickly. Now that the reality of the situation has finally sunk in, it would seem even Carl Icahn is eager to make a deal with Microsoft. This time however, only the search engine is on the table. "I've been a strong advocate of getting a search deal done with Microsoft," Icahn, who owns about 5 percent of Yahoo and sits on its board, told Reuters in a phone interview Friday. "It would enhance value if a deal got done, because of the synergies involved."
The deal is said to be “Down to the short Strokes” and According to a separate posting made by All Things Digital, several key Microsoft online executives are in Silicon Valley attempting to iron out the details. Microsoft is likely hoping the deal will allow them to tap into Yahoo’s lucrative search advertising network, but with all the recent success Bing has enjoyed recently, do you think they would phase out Yahoo search as a brand?
Tired of all the drama surrounding the future of Yahoo? You're not the only one. Not a week goes by without a new twist emerging in what's to become of the would-be search giant, and billionaire investor T. Boone Pickens has had enough. Aside from having one of the coolest names ever, Pickens also owned 10 million Yahoo shares, all of which he sold at a loss.
Pickens picked up the stock back in May in anticipation that activist Carl Icahn would wage a proxy contest to force Yahoo's board into signing on the dotted line with Microsoft. Tired of waiting, Pickens unloaded all his shares, but not without taking a parting short at Yahoo management.
"I think that Yahoo management was pathetic," Pickens told the San Francisco Chronicle.
It's unclear exactly how much money Pickens lost in the ordeal, but Yahoo stock was selling around $27 per share in late May and has since dropped to around $20 per share. Talk about a costly way to make a point.
Yahoo’s CEO Jerry Yang has scored a major victory against corporate raider Carl Icahn ahead of the crucial board election on August 1. Legg Mason’s Bill Miller, who owns a 4.4% stake in the internet company, has vowed his allegiance to Jerry Yang and the current board. Bill Miller’s support is being inferred as a fatal blow for Icahn’s Microsoft-backed proxy war as analysts don’t expect any institutional investors – that hold a stake in Yahoo – to back the boardroom coup.
The only glimmer of hope for Icahn is Gordon Crawford, who controls a substantial 6.5% stake. Gordon has hinted that he can align with Icahn but remains undecided. Yang wants to leave nothing to chance and wants to finalize a deal with AOL before the upcoming board elections, however, the chances of the deal going through ere Aug 1 remain slim.
Ace corporate raider Carl Icahn - who has been vigorously pressing upon Yahoo’s board for a deal with Microsoft - has launched his blog The Icahn Report. He might use his blog to announce his course of action in the Microsoft-Yahoo takeover saga.
Although his blog doesn't currently feature anything regarding his on-going proxy battle with Yahoo, it does have fervid posts like "Corporate Democracy is a Myth" with Carl Icahn stamped all over them. Only time - and perhaps his blog - will tell whether he still favors a deal with Microsoft or is statisfied with the recent deal between Yahoo and Google.