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Businesses The Almighty Buck Hardware

Dell Is Now a Private Company Again 151 151

Gunfighter writes "StreetInsider.com reports that Dell, Inc. completed its go-private transaction by Michael Dell, Dell's Founder, Chairman and CEO, and Silver Lake Partners, a leading global technology investment firm. Stockholders will receive $13.75 in cash for each share of Dell common stock they hold, plus payment of a special cash dividend of $0.13 per share to stockholders of record as of the close of business on Oct. 28, 2013, for total consideration of $13.88 per share in cash. The total transaction is valued at approximately $24.9 billion."
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Dell Is Now a Private Company Again

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  • by IYagami (136831) on Tuesday October 29, 2013 @01:30PM (#45271097)

    since they are no longer bound to share-holders; and can innovate for the sake of innovation? No need to bow down to MS Overlords and do as they or the so-called markets please. They can afford to lose a billion bucks in chasing their own dreams.

    Well... MS Overlords have lent Dell $2 billion.

    http://www.pcworld.com/article/2048627/dell-goes-private-as-shareholders-approve-249-billion-deal.html [pcworld.com]

    "Dell on February 5 announced that Michael Dell and investment firm Silver Lake had offered $24.4 billion, or $13.65 per share, to buy out the company. The offer, subject to shareholder approval, included a $2 billion loan from Microsoft, and debt financing from Bank of America, RBC Capital Markets, Merrill Lynch, and Barclays."

  • Re:Not bad (Score:5, Informative)

    by alexander_686 (957440) on Tuesday October 29, 2013 @01:59PM (#45271471)

    Nope, those are corporate debt. It’s standard practice in a Leverage Buy Out. A close analogy is when you refi your house and pull cash out. The value of the house remains the same, your personal value remains the same (both assets and liabilities increase by the same amount) , it just your debt to equity ratio increases.

  • by sootman (158191) on Tuesday October 29, 2013 @02:50PM (#45272005) Homepage Journal

    As much as it's fun to make fun of him now, there are 2 things to remember: 1) Apple was in pretty bad shape in 1997 -- a year before the iMac, 4 years before the iPod. 2) He's the CEO of the competition -- what would you expect him to say? "They're in trouble, but Steve is a great guy, he's done some creative things in the past, they should stay the course, work hard on making great products, and maybe someday they'll wipe up the floor with us!"

    It's not like he's the only CEO to ever do this.

    Exhibit A:

    Clark is not afraid to publicly dis a company like Apple, much as Steve Jobs once mocked IBM.

    "Apple," Jim Clark will sigh, as if he were talking about a horse on its way to the glue factory. "They're not doing anything... Apple blew it."

    Then, with a dismissive wave of his hand, and just the hint of a grin: "I think they're in serious trouble."

    -- SGI founder & chairman Jim Clark in Wired, 1994 [wired.com]

    Exhibit B: Steve Ballmer laughing at the iPhone [youtube.com]

    His complaints about the iPhone were somewhat valid at the time, but 1) he forgot that people WILL pay for a good product, and 2) if he wasn't aware of how Apple refined the iPod over the previous six years -- making it better and cheaper every year -- he's dumb as a rock. Oh wait, he was aware: [softpedia.com]

    Business Week: How much money will you lose per Zune?

    Ballmer: None. Apple put the hammer down there, dropped the price down to $249. If they had been $299, it would have been nicer. They have the advantage of scale. So we're at $249, too. We don't make a lot of money, not to start out.

    So I just mark that down to "standard CEO bluster." Or maybe he really was that stupid.

  • by zieroh (307208) on Tuesday October 29, 2013 @03:47PM (#45272587)

    Your grasp of history is weak, or perhaps just willfully ignorant. Michael Dell uttered those words in late 1997. The iMac was announced in 1998.

"Oh my! An `inflammatory attitude' in alt.flame? Never heard of such a thing..." -- Allen Gwinn, allen@sulaco.Sigma.COM

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