Michael Dell Buys Back Company for $24.4 B
By Vittorio Hernandez | February 6, 2013 10:51 AM EST
Financially challenged computer manufacturer Dell is selling the company to its former owner and other investors for $24.4 billion. Dell announced on Tuesday night that it has reached a complex agreement that would allow the company founder, Michael Dell, to buyback the company
The move would allow Mr Dell to turnaround the company weakened by the popularity of tablets, smartphones and other newer computing devices. However, the attempt would be made without the scrutiny and pressure from Wall Street.
In delisting Dell, stockholders will be paid $13.65 per share, which is 25 per cent higher than the $10.88 value of the stocks before buyout talks started. However, it is barely half of the $26 sharprice of Dell stocks five years ago.
In 2012, Dell logged a 3.5 per cent decline in PC sales, its first yearly decline in more than 10 years, reported research group Gartner. For 2013, the trend is not expected to reverse since table computers are expected to outsell laptops.
Microsoft will help the deal by lending $2 billion to the buyers, including investment firm Silver Lake. Dell raised $30 billion during its initial public offering almost 25 years ago. Once the sale is finalised, Dell shares will no longer be trade on the Nasdaq Stock Market.
Because of the IPO and Dell's boom in the 1990s, Mr Dell became one of the richest persons in the world with an estimated wealth of $16 billion. He said turning around the company would be easier if Dell would revert to private ownership.
To contact the editor, e-mail:
Most Popular Slideshows
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- 2014 US Open: Hottest Male Tennis Players To Watch [PHOTOS]
- What Happens When You Give Up Sex For 12 Months? – Dialogue With Peter Lynagh – Exclusive
- 2014 US Open: Hottest Female Tennis Athletes [PHOTOS]
Join the Conversation
- iPhone 6 To Boost Telstra’s Income By $500 Million
- Smaller Australian Telcos Required To Have Usage Alert For Customers To Avoid Phone Bill Shock
- BlackBerry to Host ‘See The Bigger Picture’ Event in London, Dubai & Toronto on Sep 24
- Addiction Rehabilitation Leader BioCorRx, Inc. Participates In San Francisco’s eMoneyShow
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase
- HTC One M8 for Windows Vs. Nokia Lumia Icon, The Battle Of Windows Phones
- Leaker of Actresses Nude Photos Accepting PayPal Donations in Exchange For Posting Alleged Sex Video of Jennifer Lawrence, Has Naked Pictures of 100 Hollywood A-Listers
- ISIS Will Target the U.S. Power Grid, Former CIA Says; Could Tap Other Fellow Extremist Groups to Do the Job
- Jennifer Lawrence's Nude Photos Leaked on Find My iPhone, Apple 'Outraged' But Says Systems 'Not Breached'
- Russia Massacres Ukrainian Volunteer Battalions—Surviving Members Alleged