Dell is currently the world's third largest supplier of PCs and the No. 1 shipper of computer monitors around the globe. Not bad for a company that started off with a modest $1,000 and team of one back in 1984. Michael Dell reflects on his company's humble beginning as Dell celebrates its 30th anniversary this month, noting that "it's been a thrilling ride" up to this point. He also took a moment to thank customers.
Michael Dell regains control of the company he founded
Dude, Michael Dell's getting a Dell. After months of negotiations and public bickering over the value of Dell, company shareholders voted on Thursday to approve the $24.9 billion sale to Michael, finally putting an end to what turned into a mini soap opera primarily starring Dell's founder and billionaire businessman Carl Icahn, who was one of the most outspoken opponents of the deal.
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.
Dell's future is as uncertain as it's ever been, and not just because the PC market is in a slump as consumers flock to mobile devices. The other major unknown is whether Dell will ultimately accept Michael Dell's proposed $24.4 billion buyout offer and go private, or if the board will be swayed by Carl Icahn's alternate deal that would keep the company public. As all this unfolds, Dell (the company) is seeing its profits get sucked into a vortex of uncertainty.
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.
Microsoft's $2 billion loan helped Michael Dell and partners purchase Dell for $24.4 billion.
First things first -- if you haven't heard by now, Dell is going private. Michael Dell, with the help of private equity firm Silver Lake and a significant loan from Microsoft, have agreed to pay Dell's public shareholders $13.65 a share, valuing the transaction at $24.4 billion. Now Mr. Dell is free to run the company without having to answer to shareholders, and while it will likely be years before we know if this was in the best interest of Dell, there's an interesting side story involving Microsoft that deserves attention.
Michael Dell reportedly wants to assume majority control of Dell.
Dell co-founder and chief executive officer Michael Dell may contribute equity financing of $500 million to $1 billion to increase his ownership in the company above 50 percent, giving him majority control, Bloomberg reports. Mr. Dell currently owns a 15.7 percent stake worth in the neighborhood of $3.6 billion. Other partners include private equity firm Silver Lake and Microsoft, each of which would contribute $1 billion to $2 billion.
The tablet war has pretty much been a two horse race: Apple vs. Android. (Yeah, we know about the PlayBook, but let’s be realistic.) And that race has been like a blowout as the iPad 2 has been galloping away from the competition pretty handily. Microsoft’s hoping to hit the ground running with Windows 8 sometime soon, however, and they’ve just got a boost from Dell, who says they plan on heavily supporting the upcoming operating system.
The PC community has already begun rallying around Gordon’s impassioned “Post PC My Ass” blog post from last week. Galvanized by his trenchant outburst against all the silly post-PC era talk out there, Michael Dell recently rubbished the whole idea of the still ubiquitous PC being on its deathbed in an interview with the Financial Times. However, for some odd reason, Mr Dell neither said what inspired his latest comments - which we strongly believe to be our Senior Editor’s highly affecting piece - nor leave any hints to that effect. Hit the jump for more on this.
HP’s decision to scrap the first, and perhaps only product resulting from its $1.2 billion acquisition of Palm was by far one of the most unexpected news stories we’ve seen in years. But just when we thought things couldn’t get any stranger, HP announced it was shopping for a buyer for their PC division as well, a move that would take the company in a radically different direction going forward. As the number one OEM PC manufacturer in the world this came as a bit of a shock to everyone, that is unless your number two. For Michael Dell the HP announcement represents a huge opportunity to grab market share, and the charismatic CEO wasted little time going after HP over twitter.