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Apr 12, 2001
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Dell 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.

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

maflynn

macrumors Haswell
May 3, 2009
73,419
43,307
Dell goes private - got a 2 billion loan from MS

While it was no secret, since word hit the streets a couple of weeks ago, its still quite shocking to see.

Hopefully they'll turn it around. I hate to see any company fail; We're talking about people's livihoods and their ability to support their families.

From Engadget

The rumors were true. Dell has announced that it will go private, assisted by a $2 billion loan from Microsoft. The full deal between stockholders, Michael Dell and investment firm Silver Lake is being valued at around $24.4 billion.

I wonder what the terms of the loan are and what's MS' expectation. Rumors were swirling that Dell was going to push harder into the Linux sector perhaps now they'll focus more attention on windows since MS lent them a boat load of money.
 

Megagator

macrumors regular
Aug 25, 2010
122
7
USA
I wonder what Microsoft wants with Dell.... Maybe finally get into the computer hardware business and sell 100% Windows computers?
 
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Squilly

macrumors 68020
Nov 17, 2012
2,260
4
PA
I didn't even know Dell was doing that bad... You see Dell's everywhere. A $2 billion loan says something though.....
 

Shanpdx

macrumors 68030
Sep 24, 2008
2,534
346
Blazer town!
Job losses

I do not really care about apple vs Dell fight.

not sure how many going to lose their jobs; is it good or bad?
 

ProVideo

macrumors 6502
Jun 28, 2011
497
688
It's too bad Jobs isn't still around to mass email this info to all employees.
 

Rocketman

macrumors 603
If Apple were to go private today it would be a $550B LBO. Since most shares are not owned by insiders, which is different from Dell, it would be more difficult to go private at all. However it would be possible for Apple and Braeburn to get considerable leverage, both bank and brokerage, buy back its stock in the open market and through dark pools, and make slow progress toward setting up a future go private effort.

If they were to buy back half the company at stock prices of $450-500 at $275B and assuming 4:1 leverage, the cash cost would be only $55B. Pocket change for Apple and Braeburn.

Although today's market cap is only $418B. Only 3x cash in bank.

Rocketman
 
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a0me

macrumors 65816
Oct 5, 2006
1,074
166
Tokyo, Japan
"I'd shut the company down and give the money back to the shareholders."

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

sittnick

macrumors member
Jan 9, 2008
86
37
"Silver Lake"

Silver Lake was the original code name for the IBM AS/400 mid-range computer line. ... Hmmm ...
 

johncrab

macrumors 6502
Aug 11, 2011
341
0
Scottsdale, AZ
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.
 

Truffy

macrumors 6502a
"I'd shut the company down and give the money back to the shareholders."

15 years later, Dell finally acted on his own advice.
And
Yeah, I remember when he said that about Apple. Hehehehe. Payback's a bitch.
Yet
They are going private, not out of business.
That's the point, they're not closing down, simply freeing themselves of the analyst whores who do nothing but expect more. Good luck to them.
 

Bantz

macrumors member
Dec 7, 2012
95
0
I love my Dell laptop, i7 15inch and amd graphics for about £400 :eek:
They also make great servers

----------

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:
 

Brian Y

macrumors 68040
Oct 21, 2012
3,776
1,064
And

Yet

That's the point, they're not closing down, simply freeing themselves of the analyst whores who do nothing but expect more. Good luck to them.

Agreed. Look at what these "expert" analysts did to Apple's last quarter. Their best EVER quarter by some margin, but because they didn't meet the results these "experts" predicted, they suffered massively negative reporting, and a massive drop in sp/market cap.

It's almost as if these analysts buy shares, over-up the predictions and dump just before announcements.
 

Muscle Master

macrumors 6502a
Oct 15, 2010
581
113
Philadelphia
And

Yet

That's the point, they're not closing down, simply freeing themselves of the analyst whores who do nothing but expect more. Good luck to them.

I'm gonna go ahead and say it

Dell is gonna lead the PC market in a few years followed by Lenovo leading in the business sector
 

robanga

macrumors 68000
Aug 25, 2007
1,657
1
Oregon
Taking the public money to fund the rapid growth phases and then buying it all back once the situation has leveled out. We may start seeing this as more of a trend.

Really a good move for them and MS. Being public in the market today is a lot harder than it once was.
 

DavidLeblond

macrumors 68020
Jan 6, 2004
2,322
599
Raleigh, NC
I remember when Dell use to make quality PCs. The PCs we've gotten out of them lately at work have been so bad we've had to drop them and go with Lenovo. Even the Dell repairmen that come by comment on how shoddy the quality is.
 

balamw

Moderator emeritus
Aug 16, 2005
19,366
979
New England
in six months there won't be a trace of production, support or anything else in the US.

Isn't that the path that brought Dell here?

http://en.wikipedia.org/wiki/Dell

Assembly of desktop computers for the North American market formerly took place at Dell plants in Austin, Texas (original location) and Lebanon, Tennessee (opened in 1999), which have been closed in 2008 and early 2009, respectively. The plant in Winston-Salem, North Carolina received $280 million USD in incentives from the state and opened in 2005, but ceased operations in November 2010, and Dell's contract with the state requires them to repay the incentives for failing to meet the conditions.[74][75] Most of the work that used to take place in Dell's U.S. plants was transferred to contract manufacturers in Asia and Mexico, or some of Dell's own factories overseas. The Miami, Florida facility of its Alienware subsidiary remains in operation, while Dell servers (its most profitable products) continue to be produced in Austin, Texas.

Used to be (pre ~2008) you could get a semi-custom Dell in a matter of days. When I last priced a Windows laptop and looked at Dell it was 7-10 days at best unless you took their default configuration.

B
 
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