Dell Founder Wins in Buy out of Dell Company for $24.9 Billion

Michael S. Dell, founder of Dell, is now preparing for a long awaited buy out after overcoming months of obstacles. This is his most strategic move to turn the company around in the face of enormous and rapid changes in the industry.

“Dell already has a foundation” in important trends like cloud computing and Big Data,” Mr. Dell said to N.Y Times. “I remain optimistic and passionate about the company.”

After shareholders have officially approved the buyout at $24.9 billion to the company's founder and an investment company, Silver Lake Partners, the company now faces the question of how Mr. Dell will optimize Dell's current state.

This effort will be in the limelight in the technology arena as established companies Hewlett Packard and Microsoft continue to fight and adapt to the rapid changes in the industry, particularly the value shift from personal computers to mobile devices and the boom of web-based service offerings.

In the past five years Dell has been changing its directions and focus from personal computers to a more challenging venture, services and software offers for corporate clientele. In fact, Dell has already invested $13 billion in software and networking firms in order to set up a services branch that will cater to Dell's core market, small and medium enterprises.

This however was not well received by its shareholders, manifesting in a painful drop in share value reaching 30 percent in five years. Going private will allow the company to do away with the issues of managing a public firm, such as being subject to highly accessible stock price allowing investors to use it as an indicator of the company's value. Dell and Silver Lake managing the company privately could afford to take its time and allow more risk.

They also shared that their goals are set within a medium to long term period. When Mr. Dell was asked how significantly this move will impact the future of Dell, the founder said that this question would be more appropriate a couple of years after the buyout.

The negotiations ended on a $13.88 per share deal, which specifically breaks down to $13.75 cash and $0.13 special dividends per share.