After months of challenges and setbacks, Michael Dell has finally succeeded in taking his company private. Now the CEO and founder’s real challenge begins: Rebuilding a company that last month reported a 72% drop in quarterly earnings.
Dell shareholders approved the deal in a special vote Thursday morning in Austin, Texas. The deal is expected to close by the end of Dell’s fiscal third quarter.
“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.”
Michael Dell announced in February that he had partnered with investment firm Silver Lake Partners to buy out the company. The effort provoked vocal opposition from influential investors, notably Carl Icahn, who said the CEO’s offer shortchanged investors, and who repeatedly questioned Dell’s leadership. Michael Dell eventually countered by increasing his buyout bid to nearly $ 25 billion, or $ 13.75 per share with a dividend of $ 0.13. The move set the final stage for the CEO’s victory on Thursday. Dell’s stock is down more than 40% since Michael Dell returned to lead the company in 2007.