Dell Computers Now Privately Owned
Dell Inc. (NASDAQ:DELL) is no longer a publicly traded company following the closing bell today. Today, Michael Dell, the founder and CEO of the well known computer manufacturer, has completed his bid to take the company off of the public market. As of market close today the company’s stock will no longer be listed on the exchange. At the time of this writing the company stock is up $0.03 or 0.25 percent.
We reported on the possibility of this happening back in February of this year, and it appears that the predictions have come to pass. The computer make has been struggling for quite some time amid the growing mobile market and decline of PC sales.
Stockholders To Receive Dividend
According to the terms of the deal shareholders will receive $13.75 in cash for each share of Dell Inc. (NASDAQ:DELL) they own. This does not include a cash dividend of $0.13 per share, which brings the total up to $13.88 per share. The overall price of the deal is $24.4 billion, which tops the original proposal by Dell in February, where the proposed price was $13.65 per share.
Michael Dell has been seeking this move for quite some time, and his comments regarding the deal expressed his excitement. He said that Dell will move forward as it “enters an exciting new chapter as a private enterprise. Our 110,000 team members worldwide are 100 percent focused on our customers and aggressively executing our long-term strategy for their benefit.”
Deal Fueled By Constant Losses
Dell has been bleeding profit like a slashed artery for the last year, and losses totaled 4.2 percent in the last quarter alone. The global PC market is not set for a healthy year either, as declines have been predicted that reach as much as 10 percent in 2014.
Shareholders Agree To Let Dell Go
The final deal was approved last month at a meeting where Michael Dell was given complete control over 75 percent of the company. He said in a follow up call that even with the decline in the PC market Dell would “expand our presence in emerging markets.” He added that the company would also continue “investing in PCs, tablets, and the virtual computing market.”
Only time will tell if the computer giant will survive as a private company. In the meantime, it is time to say goodbye to the familiar Dell Inc. (NASDAQ:DELL) stock ticker.
Disclosure: The author has no position in the stocks mentioned in this article, and does not intend to initiate any position in the next 48 hours.
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