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Michael Dell Taking Company Private (Updated)

Update: Dell's announcement this morning has thousands of Austin employees wondering how going private will affect them.

John Doggett is a Senior Lecturer at UT’s McCombs School of Business. He expects layoffs at Dell.

“I expect they will substantially reduce their PC group by most likely getting rid of consumer PCs and anybody in that group may lose their job," Doggett said. "They will also get out of their investor relations group because they don’t have any investors to talk to in the public. They probably will also not do any or many acquisitions... And I expect those who can leave, are going to leave. There’s going to be an exodus if they feel that their job is at risk."

Michael Dell sent an email out to employees shortly before 8:30 this morning.

Dell's email doesn't specifically promise jobs will stay but Dell does state he looks "forward to working with all of you, including our current senior leadership team, to accelerate our efforts."

He also acknowledges there will be "both challenges and triumphs" ahead. But, he says, they are making the right decisions for Dell, the team and customers.

Dell Enters Exciting New Chapter To: Global Dell Team Dell confidential – For internal use only Today, we announced a definitive agreement for me and global technology investment firm Silver Lake to acquire Dell and take it private. This transaction is an exciting new chapter for Dell, our team and our customers. We can immediately deliver value to stockholders, while continuing to execute our long-term growth strategy and focus on helping customers achieve their goals. Together, we have built an incredible business that generates nearly $60 billion in annual revenue. We deliver enormous customer value through end-to-end solutions that are scalable, secure and easy to manage, and Enterprise Solutions and Services now account for 50 percent of our gross margins. Dell’s transformation is well underway, but we recognize it will still take more time, investment and patience. I believe that we are better served with partners who will provide long-term support to help Dell innovate and accelerate the company's transformation strategy. We’ll have the flexibility to continue organic and inorganic investment, and grow our business for the long term. I am particularly pleased to be in partnership with Silver Lake, a world-class investment firm with an outstanding reputation and significant experience in the technology sector. They know all the technology business models, understand the value chain and have an extremely strong global network of contacts. I am also glad that Microsoft is part of the transaction, further building on a nearly 30-year relationship.   I am honored to continue serving as chairman and CEO, and I look forward to working with all of you, including our current senior leadership team, to accelerate our efforts. There is much more we can accomplish together. I am committed to this journey and I am grateful for your dedication and support. Please, stay focused on delivering results for our customers and our company. There is still considerable work to be done, and undoubtedly both challenges and triumphs lie ahead, but as always, we are making the right decisions to position Dell, our team and our customers for long-term success. Michael

It’s official: After weeks of rumors, Round Rock-based Dell is going private in a deal that sees Michael Dell retake ownership of the company he founded.

The $24.4 billion transaction, executed in conjunction with tech investment firm Silver Lake and subject to approval, is expected to be executed before the end of Dell’s second quarter in fiscal year 2014.

In a statement, Michael Dell says the company “has made solid progress” executing its corporate strategy – defined by acquisitions and diversification – “but we recognize that it will still take more time, investment and patience.”

Dell shareholders will receive $13.65 a share under the deal. Dell stock was trading at $10.88 when rumors of the deal we first published.

Wells has been a part of KUT News since 2012, when he was hired as the station's first online reporter. He's currently the social media host and producer for Texas Standard, KUT's flagship news program. In between those gigs, he served as online editor for KUT, covering news in Austin, Central Texas and beyond.
Laura first joined the KUT team in April 2012. She now works for the statewide program Texas Standard as a reporter and producer. Laura came to KUT from the world of television news. She has worn many different hats as an anchor, reporter and producer at TV stations in Austin, Amarillo and Toledo, OH. Laura is a proud graduate of the University of Missouri-Columbia, a triathlete and enjoys travel, film and a good beer. She enjoys spending time with her husband and pets.
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