Dell to Return Funds to Shareholders in $24 Billion Deal to Go Private

Tuesday February 5, 2013 6:11 AM PST by Eric Slivka
dell_logoDell today announced that it is officially going private in a $24.4 billion deal that will see the company owned by founder Michael Dell and investment firm Silver Lake Partners. The deal also involves a $2 billion loan from Microsoft.
"Michael Dell is a true visionary and one of the preeminent leaders of the global technology industry," said Egon Durban, a Silver Lake Managing Partner. "Silver Lake is looking forward to partnering with him, the talented management team at Dell and the investor group to innovate, invest in long-term growth initiatives and accelerate the company's transformation strategy to become an integrated and diversified global IT solutions provider."

Following completion of the transaction, Mr. Dell, who owns approximately 14 percent of Dell’s common shares, will continue to lead the company as Chairman and Chief Executive Officer and will maintain a significant equity investment in Dell by contributing his shares of Dell to the new company, as well as making a substantial additional cash investment.
Apple fans have been particularly interested in the fate of Dell since Michael Dell recommended in October 1997 that Apple be shut down.
"What would I do? I'd shut [Apple] down and give the money back to the shareholders," Michael Dell said before a crowd of several thousand IT executives.
At the time, Dell was surging to become the world's top-selling PC manufacturer, but it has since faltered and now stands as the third-largest manufacturer as HP and Lenovo now battle for the top spot.

Today's move is of course far from a shutdown for Dell, but Apple fans may take a certain pleasure in seeing the company turn private and return funds to shareholders as it continues its efforts to revitalize the Dell brand in a stagnant PC market.

Top Rated Comments

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23 months ago
I guess Dell didn't get the memo about the Post-PC era.
Rating: 16 Votes
23 months ago
Dell should hire Adele for a commercial.
Rating: 16 Votes
23 months ago
"I'd shut the company down and give the money back to the shareholders."

15 years later, Dell finally acted on his own advice.
Rating: 16 Votes
23 months ago

"I'd shut the company down and give the money back to the shareholders."

15 years later, Dell finally acted on his own advice.


Yeah, I remember when he said that about Apple. Hehehehe. Payback's a bitch.
Rating: 11 Votes
23 months ago

Dell should hire Adele for a commercial.


"Dude, you gotta get Adele"
Rating: 11 Votes
23 months ago
It's too bad Jobs isn't still around to mass email this info to all employees.
Rating: 10 Votes
23 months ago
This is going to be another deal where the vulture capital firm hollows out and whores out a company, running up huge bills on its credit and then walking away as everything burns. It's just like a scene from "Goodfellas" except this is all legal. It's the beginning of the end for Dell and in six months there won't be a trace of production, support or anything else in the US.
Rating: 8 Votes
23 months ago
Steve Jobs beat Michael Dell from the grave. I am so happy on so many levels, one of them being I hate Michael Dell and his right-wing politics.
Rating: 8 Votes
23 months ago
I love my Dell laptop, i7 15inch and amd graphics for about £400 :eek:
They also make great servers

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It's too bad Jobs isn't still around to mass email this info to all employees.


Mass mail info that Dell sell more PCs then Apple? :confused:
Rating: 6 Votes
23 months ago

I guess Dell didn't get the memo about the Post-PC era.


There is no such thing as the post-PC era. Anyone who believes that doesn't understand computers. It's not that people don't want or need computers but rather the fact that computing power has increased to the point where upgrade cycles are extremely long now. That is the reason for the sales slump the market has been in.

Gone are the days where upgrades provide dramatic performance improvements. The PC boom was happening when the internet was the driving force for those upgrades. An 5-8 year old computer is enough for what the vast majority of people do with one today.

These incremental upgrades are going to catch up to the phone and tablet market too in a few years and people are not going to need them as often. A few years after that the second hand market will be flooded with completely capable cheap devices and those markets will slump as well.
Rating: 6 Votes

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