Dell shareholders approve plan to take the company private with Microsoft's help

Dell's efforts to turn its company back into a privately run business cleared a major hurdle today as the company's shareholders have voted to approve the plan that has been proposed by its founder and CEO Michael Dell.

Dell's press release states that the company's stock holders will receive $13.75 in cash for each of their shares, along with a special cash dividend of $0.13 per share. Michael Dell and his primary financial partner Silver Lake are providing $24.9 billion for the company's shareholders, which includes a $2 billion investment by Microsoft.

Michael Dell waged a very public battle with billionaire activist investor Carl Icahn over the summer for control of Dell Inc., with Icahn offering his own plan that would keep part of Dell as a publicly traded company. Earlier this week, Icahn announced he was ending those takeover efforts. Dell is quoted in the press release saying he was "pleased" with the outcome of the shareholder vote today, adding, "As a private enterprise, with a strong private-equity partner, we’ll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals."

The plan still faces formal regulatory approval, but assuming that is given by the U.S. government, Dell expects to complete its move to becoming a private company by the end of its fiscal third quarter, which will happen on October 31st, 2013.

Source: Dell | Image via Dell

Report a problem with article
Previous Story

Windows 8.1 RTM's MSDN/TechNet release came after an intense internal struggle

Next Story

Another leaked image of Nokia's Windows RT tablet hits the Internet

17 Comments

Commenting is disabled on this article.

This is a good strategic move by MS. Not the new Nokia.
Dell is an OEM that has somehow managed not to be tainted with a bad image lately. If the strategy is right then an investment could pay off in future.

im sure when well paid athletes lose a championship, those are fake tears because the tens of millions in their bank accounts prevents them from feeling sadness.

vcfan said,
im sure when well paid athletes lose a championship, those are fake tears because the tens of millions in their bank accounts prevents them from feeling sadness.

Except Icahn's likely intention with his offer was to get Dell to increase his offer, not to buy the company.

In which case Icahn has won.

yeah because hes a jolly good fellow. give me a break.

he even admits he goes in there to change the management, a.k.a to control the company.

vcfan said,
im sure when well paid athletes lose a championship, those are fake tears because the tens of millions in their bank accounts prevents them from feeling sadness.

You are confusing sport and capitalism..... Pecunia not olet.

Honestly though, the 'signature' pcs MS sells in their own stores are the best pre-built pcs you can get thanks to not including any 3rd party BS.

I kind of doubt MS wants to get into the pc manufacturing business, but helping out Dell is a good way to keep an oem happy lol. Hey it worked out well for MS to support Apple back in the day.

Astra.Xtreme said,
That $2B would have been better invested in an actual "quality" company.
What's next? Buyout of Blackberry?

I was just coming to make the same comment about BlackBerry. Considering Dell's foothold in the business, bringing in BlackBerry isn't too bad of an idea. Especially if Dell could get them on the cheap.

I think the ship has long sailed for Blackberry. They would have to release something completely revolutionary to the business world to even get any attention. I just don't see that happening. They took way way too long to launch new products and bring themselves up to par with everybody else, but by that point, there was basically no reason to buy a product from a company that had tanked extremely hard. Google, Microsoft, and Apple are the big three in the phone market, and nobody else is big enough to force themselves in.

Astra.Xtreme said,
I think the ship has long sailed for Blackberry. They would have to release something completely revolutionary to the business world to even get any attention. I just don't see that happening. They took way way too long to launch new products and bring themselves up to par with everybody else, but by that point, there was basically no reason to buy a product from a company that had tanked extremely hard. Google, Microsoft, and Apple are the big three in the phone market, and nobody else is big enough to force themselves in.

i would see bbm and bbs being worth while for ms, especially the patents on phone/