After months of deliberation on Micheal Dell’s proposal to make Dell private, the deal was finally successful on Thursday. Dell’s shareholders now approved the buyout of Dell proposed by the CEO, Micheal Dell.
Dell Inc., a hardware company which was founder by Micheal Dell since 1984 while he was in college. The company has experienced a reduction in sales of their desktops and laptops, since most customers now go for smartphones and tablets. About 72 percent drop in profit was recorded by Dell last month.
The shareholders have now approved the planned $24.9 billion buyout of Dell with an investment group led by Silver Lake Partners. Micheal maintains that, Though the process of turning the company around will take sometime, but there will surely be a turn around.
“This is a great outcome for our customers and the company,” said Michael Dell during a conference call with analysts and reporters that followed the vote. He said the company would accelerate its effort to become a leading provider of end-to-end enterprise technology, and promised that Dell would “return to its roots” with an “entrepreneurial spirit.”
When the deal was introduced initially, there were oppositions from shareholders South-eastern Asset Management and activist investor Carl Icahn. Icahn said in a letter that, “I continue to believe that the price being paid by Michael Dell/Silver Lake to purchase our company greatly undervalues it”.
The company will still be based in Round Rock, Texas and the buyout deals should be completed by November.