Following months of back and forth between Michael Dell, Dell's board of directors, and a few outspoken shareholders such as Carl Icahn, the world's third largest PC maker is now back in the hands of the man who started it all. Dell announced today the completion of its acquisition by Michael, the company's founder who was also serving as chairman and chief executive officer, and Sliver Lake Partners, an investment firm.
"Today, Dell enters an exciting new chapter as a private enterprise," Michael said in a statement. "Our 110,000 team members worldwide are 100 percent focused on our customers and aggressively executing our long-term strategy for their benefit."
Dell stockholders will receive $13.75 in cash for each share of Dell common stock they hold, plus a special cash dividend of $0.13 per share, bringing the total to $13.88 per share. This values the company at $24.9 billion
, a few hundred thousand dollars above Michael's original $24.4 billion bid
The original deal first hit a snag when Southeastern Asset Management wrote in a letter
to Dells' board that the company was worth closer to $24 per share. Not long after, Carl Icahn began to aggressively oppose the deal. He threatened "years of litigation
" and then raised capital as part of a $21 billion
package to keep Dell public.
Eventually Icahn relented
when it became clear he was fighting a battle he couldn't win. However, he was successful in squeezing a bit more money out of Michael and Silver Lake Partners, so it wasn't a total loss.
Michael's plan is to privatize Dell so that he can run the company without having to answer to shareholders. Though Dell will no longer be a publicly traded company, you can bet all eyes will be on the PC maker in the coming months and throughout 2014 to see how it fares under Michael's sole guidance.