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Michael Dell To Buy Dell Inc.

Posted by timothy on from the dell-by-any-other-name dept.

awarrenfells writes "After a shareholder vote, Michael Dell is expected to buy out and take Dell Inc. private. This move comes in the wake of plans to move Dell into position as an enterprise computing provider, but some analysts state this move may have come too late, much of the target market being taken by IBM and HP already." Nerval's Lobster provides some more details at Slash Cloud: "[T]he final buyout price was $13.75 a share, which includes a 13-cent-a-share “special dividend.” All told, that puts the deal’s price at $24.9 billion. In order to reach this point, Dell and Silver Lake had to fend off activist investor Carl Icahn and investment firm Southeastern Asset Management, which made their own combined play for a restructured capitalization. In a series of public letters, Icahn argued that Dell’s privatization proposal undervalued the company, and—at least until the beginning of September—made it very clear that he was willing to fight things out in court. By convincing the shareholders that his plan is the best route forward, Dell avoids what could have devolved into a very protracted and messy battle. Michael Dell wants to focus the majority of the company’s efforts on services, essentially remaking it into a tech firm more along the lines of IBM."

16 of 175 comments (clear)

  1. Good by Anonymous Coward · · Score: 5, Insightful

    We need more CEOs with egos tied to their companies. At least they don't just loot them and run...

    1. Re:Good by realityimpaired · · Score: 4, Informative

      Cute. The company he's buying happens to have the same name as he does. So It would be like someone name McDonald buying a burger company, or somebody named Ford buying an automobile manufacturer

      The reason the company he's buying happens to have the same name as he does is because he founded the company in the 1980's. It later went public, and this is not the first time he's tried to take it private again. Many, many times over the years, he's made large stock buys/sells in the company to try to force an adjustment to the share price and/or reassure investors.

      Obligatory disclaimer: I used to work for the company, and while I wouldn't say he's a friend, I've met him several times.

    2. Re:Good by Baloroth · · Score: 4, Informative

      More specifically, it'd be like Henry Ford buying Ford Motor Company. Michael Dell founded Dell, the name is not a coincidence.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    3. Re:Good by prelelat · · Score: 4, Informative

      What are you even talking about. Micheal Dell started that company from the ground up building computers one at a time by himself. He put a lot of hard work and time into that company and he sees it's in trouble. So instead of cashing out and getting the fuck away like most people would he takes it appon himself to buy up the company, make it private and try and fix it. He's definitely tied to that company he's treating it like he would a child that has lost it's way. What you are suggesting is that he's just some random guy who happens to have the same name and it's not a big deal. It's a huge deal, you know he's not going to come in there and run it to maximize profits short term, that he's not going to sell off everything to show profits to investors. A move like this suggests that he wants to go in there an fix the company long term without worrying about investors breathing down his neck.

      Your trivializing this action in a day when it doesn't usually happen with large companies. Even apple was still publicly shared when Jobs took back his roll.

    4. Re:Good by Anonymous Coward · · Score: 4, Funny

      It would have the worst safety record, but the labor would be impossibly cheap. We need to make zombie farms to fight the Chinese economic machine!

      Where is my Umbrella?

  2. Dude! by Conspiracy_Of_Doves · · Score: 5, Funny

    He's getting Dell.

    --

    Technoli
    1. Re:Dude! by Dogtanian · · Score: 4, Funny

      Dude! He's getting Dell.

      I guess the answer to "I Cahn Has Dell?" was no, then.

      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
  3. M.Dell by djupedal · · Score: 4, Interesting

    "Michael Dell wants to focus the majority of the company’s efforts on services, essentially remaking it into a tech firm more along the lines of IBM."

    Problem is, IBM committed to that approach years ago, in a different world. I'm not sure that would work today, given how long traction would take and how things will continue to evolve in the mean time. You can't commoditize this kind of thing, after all.

    1. Re:M.Dell by Anonymous Coward · · Score: 5, Insightful

      > You can't commoditize this kind of thing, after all.

      Commoditize is the right word. When people hire professionals to provide services, they want to hire an expert. They want someone they can trust. Dell has always been about selling the lowest quality crap they can get away with and then not honoring their warranties.

      Just look at their recent keyboard fiasco. The KB212 drops keypresses, and Dell has decided that instead of honoring their warranty and replacing the keyboards that they instead would strike-out and insult the people that call them for replacements. When my boss called Dell about the eight we had that were dropping keypresses, they said that our employees that had trouble were incompetent and did not know how to use a keyboard. He is a Dell fanboy so he fired a couple people. He actually believes that the people that complained didn't know how to use a keyboard. That sort of dishonest crap over a $12 keyboard proves that Dell has no intention of ever becoming a trustworthy company.

    2. Re:M.Dell by Anonymous Coward · · Score: 4, Insightful

      Firing people over broken keyboards? Wow, you should try to get out ASAP!

  4. I'd shut it down... by Anonymous Coward · · Score: 4, Funny

    I'd shut it down and give the money back to the shareholders

    1. Re:I'd shut it down... by MightyYar · · Score: 4, Informative

      Save your scorn for Michael Dell - it's a direct quote.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  5. Re:Good for you Mr. Dell... apk by Chris+Mattern · · Score: 5, Funny

    (like Microsoft &/or Ford Motor Inc. - they're examples of companies where the ownership NEVER LOST CONTROL, because THEIR NAMES WAS ON IT

    Ah yes, who will ever forget the great tycoon Bob Microsoft.

  6. Bernard L. Madoff Investment Securities LLC by perpenso · · Score: 4, Insightful

    We need more CEOs with egos tied to their companies. At least they don't just loot them and run...

    I get the sentiment and there is a degree of truth there but here is a counterexample: Bernard L. Madoff Investment Securities LLC

    Always practice due diligence. Even if someone's name is on the sign, even if the founders are still running the place.

  7. Re:Good for you Mr. Dell... apk by dkleinsc · · Score: 5, Funny

    Well, actually the names got accidentally reversed by a city clerk: The guy's real name was Microsoft Bob.

    --
    I am officially gone from /. Long live http://www.soylentnews.com/
  8. Not shutting down, just leaving Wall Street ... by perpenso · · Score: 4, Insightful

    Speaking of which, Steve Jobs must be laughing in his tomb. Dell should "re-embourse the shareholders and close the shop".

    While he is returning money to shareholders he is not shutting down Dell. Its going private, its not going to be beholden to the quarterly desires of Wall Street. Dell is probably better of this way.