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(Image source: Flickr / Dell)
BY JAMAL ANDRESS
On Thursday, Dell shareholders approved a $24.9 billion buyout of the tech company by
its founder, Michael Dell.
Michael Dell, with the help of private equity firm Silver Lake Management, has been working
to buy the company for seven months. But his plans were met with fierce opposition from
billionaire and active investor Carl C. Icahn, who argued the price point was too low. (Via
Icahn's chances of stopping the buyout were diminished after a Delaware court denied his
attempt to rush a lawsuit against the company's board. (Via Bloomberg)
Although no official numbers have been released, CNBC says 65 percent of shareholders voted
in favor of the buyout.
Michael Dell's decision to buy his company back comes after years of shrinking sales
and profits. He believes the buyout will help him take the company in a different direction.
"This is a great outcome for our customers and our company and I am more than excited
to move even faster toward our goal of becoming the industry's leading provider of scalable
end-to-end technology solutions." (Via CNBC)
Michael Dell wants to rebrand the company as a "solutions provider."
According to The Wall Street Journal, Dell wants to focus more on three areas: developing
security software to help businesses protect their data, helping companies take an "analytical
approach" to their business decisions, and offering easy-to-use bundles of hardware and
But according to Time, Dell's window of opportunity for change is a small one.
"If the overall transition from PCs to smartphones, tablets, and cloud computing continues apace,
Dell may quickly run out of the time and cash-flow it needs to complete its transformation."
The buyout places Dell at $13.75 a share. It's expected to close by the third quarter
of fiscal year 2014.