Dell Becomes Private Company

The year was 1984, and Michael Dell was attending school at the University of Texas as a pre-med major. He sat in his dorm room like any other student; however, what he was doing was far from ordinary. When he began tinkering with computers, it was highly unlikely that either he or anyone else in the same dorm building knew he would eventually become the owner of the currently third largest personal computer company in the world with Dell Computers.

The company eventually went public, and it did fairly well in the early 2000s; however, things have changed since. Resources have noted that the price per share has hovered somewhere between the $10 and $15 dollar range as of late- a mark that is far lower than many other technology-based stocks. As a result, Mr. Dell has contemplated taking the company private for a while now.

Today, it has been announced that Michael Dell will, in fact, be transitioning his company from a public company back to a private company. This is a move that some love and others are not such big fans of. Those in favor of the deal like the fact that Mr. Dell will have more control over the operation of his company opposed to having to answer to shareholders and to consider suggestions that others have that he may not personally agree with. Those against the deal say that going private is not necessarily going to solve all of his company’s problems. They say that the other competitors are going to keep producing high-quality products, which is something Dell is always going to have to go up against whether they are a public or a private company.

The deal was reached for the amount of $24.4 billion. Michael Dell will personally invest in the deal, a private equity firm will invest and Microsoft will issue a loan in the amount of $2 billion. While the money is there to return the company to operating as a private organization, many wonder about the future of Dell. Even though the share prices were lower in comparison to those of Dell’s competitors, this was still money on the table for Dell to use to test new products and do the required research to stay competitive. But, we also realize that there is still a lot of money backing Dell as a private company, so it will be interesting to watch things unfold.

Bobby Simmons is a political news reporter and has a vast experience in covering politics. He has received recognition at high level news media and has joined to provide the same.

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