Dell goes private: behind the struggling computer company's $25 billion buyout


Dell, a former PC powerhouse that's now struggling to maintain its place in the computing ecosystem, has been taken private in a deal financed by CEO Michael Dell's equity, a $2 billion loan from Microsoft, and funding from banks and investment firmst. Dell hopes that after the $24.4 billion buyout, the company can recover its position free from investor pressure. But will that freedom be enough to turn Dell around?

17 updates and 1534 comments below.

Oct 01 1:48p

Regulators approve Dell's $25 billion buyout deal

Dell just announced that the company has received "all the necessary regulatory clearances" to go ahead with its $25 billion buyout deal, funded by founder Michael Dell and Silver Lake Partnerships. Shareholders had approved the deal earlier this month by a 65 percent margin, but various federal regulators were required to sign off before it could officially proceed. The company now expects the deal to officially close before the third quarter of 2014. In an earlier statement, Michael Dell...

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Sep 25 4:54p

Michael Dell promises 'another significant wave of tablets' as he takes the company private

Dell might not be interested in smartphones, but the company's planning plenty of slates. In an interview with AllThingsD, company CEO Michael Dell said that we should expect "another significant wave of tablets from us in the coming weeks." Though Dell recently dropped its Windows RT offering, we think we might know what he's talking about. On October 2nd, the company's planning to reintroduce its Venue brand, including an 8-inch Windows 8.1 tablet called the Venue 8 Pro.

The thrust of A...

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Sep 12 10:20a

Dell shareholders approve $25 billion buyout to go private

Michael Dell has finally wrestled control of Dell, the company he founded, back from its shareholders. A board vote this morning ends month of speculation on whether it would approve Michael Dell's multibillion-dollar offer to take the company private. Dell's offer saw strong competition in the form of a counteroffer from "activist investor" Carl Icahn, but Icahn ultimately pulled the plug on his attempt, saying that it would be "almost impossible" to win today's shareholder vote.

Sep 09 10:44a

Carl Icahn won't seek to defeat Dell buyout but says it 'greatly undervalues' company

Carl Icahn will no longer attempt to defeat a $24.9 billion deal to take Dell private, though he maintains that Michael Dell and private equity firm Star Lake are lowballing shareholders. "We have determined that it would be almost impossible to win the battle on September 12th," Icahn wrote in a letter to shareholders today. "We therefore congratulate Michael Dell and I intend to call him to wish him good luck (he may need it)." Icahn is claiming a small victory, however; he points to the...

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Jul 18 9:25a

Dell shareholders postpone decision on buyout proposals for another week

A meeting of Dell shareholders this morning had been expected to finally pass judgment on the protracted issue of whether to approve Michael Dell's $24.4 billion proposal to take the company private or Carl Icahn's counteroffer. Alas, the meeting only lasted a few brief moments, enough time for company director Alex Mandl to declare an adjournment of the decision until Wednesday, the 24th of July. Earlier in the week, Reuters came out with a report saying that Michael Dell did not have...

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May 10 12:31a

Icahn and Southeastern propose counteroffer to Dell buyout

Last month, Dell allowed Carl Icahn to come up with an alternative to founder Michael Dell’s proprosed $24.4 billion buyout of the company, and now he and Southeastern Asset Management are telling shareholders what they have in mind. The Wall Street Journal reports that the plan would pay $12 a share in cash or stock, and while that’s considerably lower than the $13.65 a share Michael Dell is proposing in his bid to take the company private, it would allow shareholders that don’t want to sell...

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Apr 18 9:39p

Blackstone withdraws $25 billion Dell bid

Dell indicated that it would take Carl Icahn's bid for the company seriously when it struck a deal with the billionaire investor earlier this week, and it may have more reason to do so now — multiple sources are reporting that Blackstone has now abandoned its rival offer. According to the Financial Times, Blackstone's investors weren't convinced of the deal's merits, and felt that Dell's value on the stock market is already fair. Blackstone's deal would have included an option for...

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Apr 16 10:02a

Dell avoids hostile takeover from Carl Icahn, hopes for better deal

The wheeling and dealing as Dell continues its plan to go private continues. Today, the company announced that it struck a deal with investor Carl Icahn that will avoid the chance of a hostile takeover while also signaling that it will take his rival bid more seriously. Icahn and his team have agreed not to purchase more than 10 percent of Dell's shares, nor will they enter into agreements with other shareholders that would give the combined partnership more 15 percent of Dell's shares —...

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Apr 01 10:52a

Dell says PC business in danger from poor Windows 8 sales, low revenue

While some Dell investors have taken issue with CEO Michael Dell's proposed plan to take his company private, an SEC filing has revealed some compelling reasons for investors to think twice about protesting the move. As noted by Forbes, a filing dated March 29th includes a lengthy section where Dell outlines the "risks and uncertainties" related to continued ownership of the company's stock — it's essentially a laundry list of how the consumer tech market has changed and how hasn't quite m...

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Mar 25 7:31a

Dell details rival takeover bids from Blackstone and Carl Icahn

As reported on Saturday, Michael Dell's attempt to take Dell private has been challenged by a pair of rival bids. In a press release this morning, Dell's board confirmed that it has received "two alternative acquisition proposals" from investment group Blackstone and "activist investor" Carl Icahn. The computer giant also published details of the bids, revealing that both offer a higher per-share price than Michael Dell's $13.65 proposal, which valued the company at $24.4 billion.


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Mar 23 12:22p

Michael Dell's buyout plans reportedly challenged by two rival bids

Bloomberg is reporting that Blackstone Group has submitted a preliminary offer to buy Dell. Citing a "person familiar with the matter," the publication says the bid commits Blackstone to hold takeover discussions with the Texas computer giant. Company founder Michael Dell is currently attempting to gain shareholder approval for a deal that would see him take Dell off the market and back into private hands. Michael Dell's $24.4 billion privatization plan involves a large personal investment,...

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Mar 07 8:44a

Dell buyout challenged by another major investor and potential bids from Lenovo and HP

Dell's buyout deal is reportedly facing more opposition from shareholders, and competing offers could be in the works. Sources have told Bloomberg that fellow computer makers HP and Lenovo have expressed interest in buying the company at a higher price, as has Blackstone Group. The sources say HP and Lenovo are unlikely to actually pursue a bid, but their consideration will complicate Michael Dell's plan to take the beleaguered company private for $24.4 billion provided by himself, equity...

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Feb 12 2:27p

Influential Dell investors oppose buyout, insist company is worth more than $24 billion

It would seem that the "immediate value" Michael Dell says stockholders are poised to receive thanks to Dell's $24 billion privatization deal isn't proving satisfactory to some. Today, investment firm T. Rowe Price, which holds a sizable chunk of Dell stock, came out in opposition of the proposed terms. "We believe the proposed buyout does not reflect the value of Dell, and we do not intend to support the offer as put forward," said Brian Rogers, T. Rowe's chief investment officer. T. Rowe...

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Feb 06 9:39a

Dell's downward spiral: 10 years of failed consumer devices

Things haven't gone so well since the Dell Dude split Continue reading »

Feb 05 10:09a

Software support: Microsoft's loan to Dell is a protective move to secure big business

Following rumors of a Microsoft multi-billion dollar investment in Dell, the software giant has confirmed its moves to help take Dell private. Microsoft will invest around $2 billion in the form of a loan to Dell, a deal that was supervised by Silver Lake — the same private equity firm that helped Microsoft acquire Skype for $8.5 billion back in 2011. The loan may seem puzzling initially, given Microsoft's own Surface hardware strategy, but if you look a little deeper it's clear this is all...

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Dell may go private in $24.4 billion deal, including $2 billion loan from Microsoft

Dell has officially closed a buyout of the company, taking the company off the publicly-traded stock market and into private hands. The deal is being financed by cash and equity from CEO Michael Dell, funds from investment firms Silver Lake and MSD Capital, a $2 billion loan from Microsoft, plus debt financing from a number of banks as well as Dell's cash on hand. Dell's shareholders will receive $13.65 for each share of common Dell stock they hold, up about 25 percent from Dell's closing...

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Jan 22 11:28a

Report: Microsoft may invest up to $3 billion to help Dell go private

We heard last week that Dell was in talks to take the company off the publicly traded stock market, and now CNBC is reporting that Microsoft might invest in the company to make that happen. Microsoft may invest between $1 billion and $3 billion in Dell to help the company go private — and with Microsoft's interest in producing Windows 8 hardware, this deal might help bolster its hardware business down the line. Microsoft is apparently in talks with investment firm Silver Lake (the main...

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Jan 14 2:07p

Dell in talks to take company private, says Bloomberg

Dell is currently in talks to take the company off of the publicly traded stock market, according to a report from Bloomberg. The company has apparently already contacted a number of large banks to help finance the move. Shares of Dell are up fifteen percent and rising since the news that the company plans to go private broke.

Once a giant in personal computers, Dell has struggled in recent years, losing over a third of its value just last year. In its most recent financial report, released...

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