Items tagged with Michael Dell
We first got an inkling that Dell Inc. was interested in purchasing EMC Corp late last week, and today we received official confirmation of that deal. And as we expected back then, this a whopper of a deal — in fact, it’s being billed as the largest tech acquisition in history. The world’s No. 3 PC maker — with the help of MSD Partners and Silver Lake — is offering up $33.15 per share in cash and special stock for EMC, valuing the deal at $67 billion. The $33.15/share price is roughly 28 percent higher than EMC’s share price at close of day Wednesday October 7th; the day before the first reports of the deal started trickling out. The share price also includes $9.10 worth of tracking stock for...
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Michael Dell is no longer beholden to shareholders after taking the computer company he founded private two years ago. As such, he's free to invest more than $125 billion in China over the next five years as part of his "In China, For China" 4.0 strategy announced today without having to worry about how it might affect the company's stock price. The massive investment will continue to expand and enhance Dell's research and development team in China, Dell's second largest market for PC sales. It will also contribute some $175 million to imports and exports, which in turn will sustain more than 1 million jobs in the country. "China and the United States are among the countries where the information...
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Let's face it, sometimes a father knows best, and that applies to business as well. Hence why Michael Dell, founding father of the world's third largest PC company, fought so hard to take Dell private so that he could maneuver the firm in the path of his vision without being second guessed and scrutinized by shareholders every step of the way. And now a year removed from the $24.9 billion buyout, things are looking bright. Exceedingly bright, that is. Citing a pair of people with knowledge of the matter, Bloomberg reports that Michael and private equity firm Silver Lake Management LLC have made a paper gain of at least 90 percent on their investment. And if they're being honest, neither would...
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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...
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Barring anything unexpected, Michael Dell is almost assured to gain control of the company he founded and take it private following a shareholder vote later this week. Michael had originally proposed a $24.4 billion buyout offer for the world's third largest PC maker, but things hit a snag when some began to question Dell's overall value. Billionaire investor and Dell shareholder Carl Icahn emerged as one of the most outspoken opponents of the deal, threatening legal action and even putting together an alternative package that would pay shareholders a dividend while keeping the company public. Michael ultimately responded by sweetening the offer with an increase in the purchase price from $13.65...
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Michael Dell is in the midst of trying to take over the company he founded long ago, and if he succeeds in his bid, he'll take Dell private, giving himself complete control without having to answer to a board of directors or shareholders. He'll then be able to run the company however he sees fit, and with the market trending to mobile, some have surmised Michael would pull out of the PC market. Would he really do that? Probably not. In case anyone was wondering where he stands, Michael stated in no uncertain terms at the Dell Solutions Summit in Beijing, China, that Dell will continue to build and sell PCs. Part of the reason why he doesn't want to abandon PCs is because of the large growth potential...
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Dell reported a 72 percent annual drop in net income to $204 million during its second quarter for fiscal 2014, though the company remains steadfast in its strategy to customers in what it termed a "challenging environment." Indeed it is for PC makers as sales continue to slide during the recent transition to mobile devices, like tablets and smartphones. Revenue came in at $14.5 billion, about the same as it was a year ago. Interestingly, it was software, not hardware, that ultimately hurt Dell's bottom line. Dell's desktop and think client revenue actually jumped a percentage point, which doesn't sound like much to brag about, except that Dell was the only vendor among the top five PC makers...
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After penning an open letter to Dell's board of directors essentially telling the company to take or leave his "best and final offer" to acquire the company he founded, Michael Dell has gone back and revised his bid as part of a new agreement with Dell's special board committee, Dell said in a statement. Michael sweetened his offer by increasing the purchase price by a dime from $13.65 per share to $13.75 per share, providing a $0.13 per share dividend to shareholders, and a guarantee that the third-quarter dividend of $0.08 per share will be paid at or before closing. All of this equates to at least an additional $350 million over Michael's original $24.4 billion buyout offer. Not for nothing,...
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Michael Dell is apparently finished with negotiations and has made a final offer to Dell's board of directors to take control of the company he founded. In an open letter to shareholders, Michael reiterated that taking Dell private is, in his opinion, still the right thing to do. You also get the impression that he's frustrated the process is taking so long. "After one of the most thorough processes in history, the highest price that any of the parties was willing to pay was $13.65 per share," Michael stated in his letter. "Although no other party has offered to pay more than $13.65 per share, Silver Lake and I have now increased our offer to $13.75 per share, an increase to public shareholders...
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It wasn't that long ago when it seemed like Michael Dell was well on his way to acquiring the company he founded. Michael, along with Silver Lake Partners and an investment from Microsoft, put together a $24.4 billion buyout bid that was unanimously approved by Dell's board of directors. The deal would pay shareholders $13.65 per share, and then Michael and his company would ride off into the sunset, going private along the way. Billionaire businessman and Dell shareholder Carl Icahn has been one of the most outspoken opponents of the deal, claiming that Michael's offer severely undervalues the world's third largest PC maker. Icahn offered an alternative deal that was initially shrugged off by...
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Billionaire businessman Carl Icahn may ultimately fail in preventing Michael Dell from acquiring the company he founded and taking it private, but he isn't going down without a fight. Icahn keeps coming back to the table with new proposals, and the latest development is that he's seeking a meeting with Dell's board of directors after lining up a $5.2 billion loan. "With that we put an end to the unwarranted speculation by Dell that our money would not be available," Icahn stated in a letter, according to Reuters. Icahn, along with Southeastern Asset Management, has offered to pay Dell's shareholders $14 per share while allowing them to hold onto their stock. Michael, meanwhile, is trying to acquire...
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A special committed formed by an independent group of directors weighed in on the situation with Dell and the two offers on the table, one a buyout bid by company co-founder Michael Dell and the other a dividend payment by activist investor Carl Icahn. The committee's suggestion? Take Michael's money and run. Michael, along with private equity firm Silver Lake Partners, originally proposed a $24.4 billion buyout of the world's third largest PC maker with the intention of taking the company private. Under that scenario, Microsoft would kick in a $2 billion loan to help seal the deal. Dell's board of directors unanimously voted in favor of the deal, which would pay shareholders $13.65 per share,...
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What was supposed to be a relatively quick and easy buyout of Dell, the world's third largest PC vendor, has turned into a drawn out dispute over the company's value, with Carl Icahn having emerged as one of the loudest voices of dissent. Perhaps fed up with the whole ordeal, Dell's board of directors, who unanimously voted in favor of Michael Dell's original $24.4 billion buyout offer, is urging shareholders to put the matter to a vote According to Reuters, Dell's board stated in its letter to shareholders that Michael's proposal "is the best alternative available...it offers certainty and a very material premium over pre-announcement trading prices." The letter didn't mention Icahn's alternate...
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Three months ago, Dell's Board of Directors unanimously approved a merger agreement under which company founder Michael Dell and investment firm Silver Lake Partners would acquire the PC maker for $24.4 billion. Michael's plan is to take Dell private so he can run the company as he sees fit without the pressure of answering to shareholders each quarter, and while that still may happen, it's not a foregone conclusion. One person who's been aggressively opposed to the deal since the beginning in Carl Icahn. Mr. Ichan is viewed as the last major threat to the deal ever since the New York-based investment firm Blackwater Group LP pulled out of its pursuit of Dell by withdrawing an alternative offer...
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It's tough to say what kind of resistance Michael Dell anticipated when decided to acquire the company he founded for $24.4 billion. Under terms of the deal, which was unanimously approved by Dell's Board of Directors, Mr. Dell and his investment partners will pay shareholders $13.65 per share in cash. That figure represents a 25 percent premium over Dell's closing share price of $10.88 on January 11, 2013, the last trading day before rumors surrounding the deal were first published, but not everyone is happy with the figure. Days after the deal was announced, Southeastern Asset Management wrote a letter to the board stating Dell's value is closer to $24 per share. Based on that belief, it deemed...
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Michael Dell, along with partners Silver Lake Management and Microsoft, are anxious to complete a takeover bid of the world's third largest PC maker, but not everyone involved is gung-ho to get it done. Southeastern Asset Management, Dell's biggest outside shareholder, plans to fight the acquisition on the basis that Mr. Dell's takeover price isn't high enough. Michael Dell and his investment partners struck an agreement with Dell's board to acquire the company for $13.65 per share, valuing the company at $24.4 billion. However, Southeastern Asset Management wrote in a letter to the board that Dell is worth closer to $24 per share, The New York Times reports. Dell via Flickr Southeastern Asset...
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Dell's decision to go private (and Microsoft's $2B investment) are big news in the tech world today, but there's precious little in the way of hard evidence for why Michael Dell decided to buy back the company he founded as a college student back in 1984. The Microsoft angle has gotten a lot of press, but it's not the primary driver of the deal. In a $24 billion deal, two billion is only 8.3% of the total. It didn't buy Microsoft a seat on the board or governance rights. The obvious reason for Microsoft to invest in Dell is for product manufacturing; Dell could easily handle Redmond's Surface volume. It's entirely possible that a deal like this is in the works, but Microsoft's Surface isn't exactly...
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It happened. Dell today announced it has signed a definitive merger agreement in which company founder, Chairman, and CEO Michael Dell will acquire the company for approximately $24.4 billion. Microsoft and Silver Lake Management are also involved the transaction, which had been rumored for weeks. "The Dell Board of Directors acting on the recommendation of a special committee of independent directors unanimously approved a merger agreement under which Michael Dell and Silver Lake Partners will acquire Dell and take the company private subject to a number of conditions, including a vote of the unaffiliated stockholders. Mr. Dell recused himself from all Board discussions and from the Board vote...
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Dell, the third biggest PC manufacturer in the world, could be a private company by the time the weekend is over. While most of use are planning Super Bowl parties (go 49ers!), Dell founder and chief executive officer Michael Dell, along with private equity firm Silver Lake Partners, are trying to finalize a a potential $24 billion deal that would shift majority control of the PC maker to its founder. Silver Lake and Microsoft would then become minority investors, with Michael Dell owning 51 percent of the company. Why go private? One of the main reasons is it would allow Michael Dell and his partners to transform the computer company however they see fit and without having to answer to a Board...
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Michael Dell is exactly what the Windows and Linux community need right now. It doesn't matter if you're not a fan of Dell computers, it's Mr. Dell's message that speaks to computer users far and wide. Consider that Apple is pushing hard into the mobile space with its iPad tablet devices, creating a sector that some analysts claim is cannibalizing the PC market. Smartphones are rocking dual-core processors (and soon quad-core chips), and the world's largest computer maker (HP) wants to sever its PC division, either as a spin-off or packaged with a bow and sold to the highest bidder. While all this is going on, Michael Dell comes out and squashes all the gloom and doom talk as complete and utter...
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Michael Dell, no doubt after an exhaustive search, thinks he's found just the guy to lead Dell back to the top spot in personal computer sales. Dell Chairman and founder Michael Dell reclaimed the position of chief executive officer, ousting Kevin Rollins after he lost the lead in personal computers and failed to revive earnings growth. The shares rose 4.3 percent after the company said Rollins, 54, resigned effective immediately. The decision to replace him was made earlier this week, said spokesman Bob Pearson, declining to be more specific. Meet the new boss, etc. etc......
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