For a long time, Dell has been a struggling company. In the recent years, the grueling competition took Dell by surprise and the company started to fall. Not only did the company’s sales go down, but also its shared. The company’s owner, Michael Dell previously wanted to take the company private, but was having problems with investor Carl Icahn.
Today, in a press release by Dell, the company owner has gotten approval from shareholders to take the company private. This is an attempt from Michael Dell to save the company, perhaps change its direction, become more innovative and than come back into the game.
Michael Dell will buyback the company at the expense of $25 billion. This deal includes payments of $13.75 per share to stockholders and “payment of a special cash dividend of $0.13 per share to stockholders of record as of a date prior to the effective time of the merger.”
It’s good to see that Dell is interested in saving the company from completely falling apart. $25 billion is not a small amount, so he must have a plan in mind because he’s spending so much money. Due to the company going private, Dell will have time and resources to come up with ways to reconstruct the company to better suit the current market. The once popular PC vendor is now almost a forgotten company. With the attention almost always on Samsung and Apple these days, several companies are suffering from profit losses.