Wikipedia

Michael Dell

Michael Saul Dell(born February 23, 1965) is an American billionaire businessman and investor. He is the founder, chairman, and CEO ofDell Technologies,one of the world's largesttechnologyinfrastructure companies.[1]

Michael Dell
Dell in 2021
Born
Michael Saul Dell

(1965-02-23)February 23, 1965(age 59)
Houston,Texas, U.S.
Alma materUniversity of Texas at Austin(dropped out)
Occupations
  • Businessman
  • investor
  • philanthropist
Title
Spouse
Susan Lynn Lieberman
​
​
(m.1989)​
Children4
RelativesAdam Dell(brother)
Signature

He is the 10th-richest person in the world, according to theBloomberg Billionaires Index,with anet worthof $124 billion as of March 2024.[2]As of October 2023, according toForbes,approximately $50 billion of his net worth was derived from his 50% stake in Dell and 40% stake inVMware,with the rest being held by his family officeDFO Management.[3]

In January 2013 it was announced that he had bid to take Dell Inc. private for $24.4 billion in the biggestmanagement buyoutsince theGreat Recession.Dell Inc. officially went private in October 2013.[4]The company once again went public in December 2018.[5]

Early life and education

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Dell was born in 1965 inHoustonto aJewishfamily. His parents were Lorraine Charlotte (née Langfan), astockbroker,[6]and Alexander Dell, anorthodontist.Michael attendedHerod Elementary Schoolin Houston.[7]In a bid to enter business early, he applied to take ahigh school equivalency examat age eight.[8]In his early teens, he invested his earnings from part-time jobs instocksandprecious metals.[9]

Dell purchased his firstcalculatorat age seven and encountered an earlyteletypeterminal in junior high. At age 15, after playing with computers atRadio Shack,he got his first computer, anApple II,which he promptly disassembled to see how it worked.[10]Dell attendedMemorial High Schoolin Houston, selling subscriptions to theHouston Postin the summer.[11]Dell's parents wanted him to be a doctor and in order to please them, he took uppre-medat theUniversity of Texasin 1983.[12]Dell continued learning to target specific populations for newspaper subscriptions rather than just making cold calls.[13]He discovered that people who were most likely to get a subscription were newlyweds and people moving to a new home. After collecting the contact information of this population from public records, he sent direct mail appeals and earned $18,000 in one year.[11]He hired several employees, and after earning a gross profit of nearly $200,000 in his first year of business, Dell dropped out of the University of Texas at age 19.[14]

Business career

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A PC's Limited Turbo PC signed by Dell
Michael Dell lecturing at the Oracle OpenWorld, San Francisco, 2010

While a freshman pre-med student at theUniversity of Texas,Dell started an informal business putting together and selling upgrade kits for personal computers in Room 2713 of theDobie Centerresidential building.[15][16]He then applied for a vendor license to bid on contracts for the State of Texas, winning bids by not having the overhead of a computer store.[17][18][19]

In January 1984, Dell believed that the potential cost savings of amanufacturer selling PCs directlyhad enormous advantages over the conventional indirect retail channel.[20]In January 1984, Dell registered his company as "PC's Limited". Dell’s strategy was to sell directly to customers by manufacturing computers only after they were ordered.[21]Operating out of acondominium,the business sold between $50,000 and $80,000 worth of PC upgrades, kits, and add-on components. In May, Dell incorporated the company as "Dell Computer Corporation" and relocated to a business center in North Austin. The company employed a few people as order takers, a few more to fill the orders, and, as Dell recalled, a manufacturing staff consisting of "three guys with screwdrivers sitting at six-foot tables". The venture's capitalization cost was $1,000.[22][23]During the formative years of Dell Computer, Dell was mentored byMorton Meyerson.[24]

In 1992, aged 27, he became the youngest CEO of a company ranked inFortunemagazine's list of the top 500 corporations.[25]In 1996, Dell started selling computers over the Web, the same year his company launched its firstservers.By March 1997, Dell Inc. reported about $1 million in sales per day from dell.com.[26][27]In the first quarter of 2001, Dell Inc. reached a world market share of 12.8 percent, surpassingCompaqto become the world's largest PC maker. The metric marked the first time the rankings had shifted over the previous seven years. The company's combined shipments of desktops, notebooks and servers grew 34.3 percent worldwide and 30.7 percent in the United States at a time when competitors' sales were shrinking.[28]

On March 4, 2004, Dell stepped down as CEO, but stayed as chairman of Dell Inc.'s board, whileKevin Rollins,then president andCOO,became president and CEO. On January 31, 2007, Dell returned as CEO at the request of the board, succeeding Rollins.[29]

In 2013, Michael Dell with the help ofSilver Lake Partners,Microsoft, and a consortium of lenders took Dell, Inc. private. The deal was reportedly worth $25 billion and faced difficulties during its execution. Notable resistance came fromCarl Icahn,but after several months he stepped aside. Michael Dell received a 75% stake in the company.[30]

On October 12, 2015, Dell Inc. announced its intent to acquire the enterprise software and storage companyEMC Corporation.At $67 billion, it has been labeled the "highest-valued tech acquisition in history".[31][32]The acquisition was finalized September 7, 2016.[33]

Penalty

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In July 2010 Dell Inc. agreed to pay a $100 million penalty to settle SEC charges[34]of disclosure and accounting fraud in relation to undisclosed payments fromIntel Corporation.Michael Dell and former CEO Kevin Rollins agreed to pay $4 million each and former CFO James Schneider agreed to pay $3 million to settle the charges.[34]

Accolades

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Accolades for Dell include "Entrepreneur of the Year" (at age 24) fromInc.magazine;[35]"Top CEO in American Business" fromWorthmagazine; "CEO of the Year" fromFinancial World,IndustryWeekandChief Executivemagazines. Dell also received the 1998 Golden Plate Award of theAmerican Academy of Achievement[36]and the 2013Franklin Institute'sBower Award for Business Leadership.[37]

Affiliations

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Dell serves on the Foundation Board of theWorld Economic Forum,the executive committee of the International Business Council, the U.S. Business Council. He previously served as a member of the U.S.President's Council of Advisors on Science and Technology.[38]

In April 2020, GovernorGreg Abbottnamed Dell to the Strike Force to Open Texas – a group "tasked with finding safe and effective ways to slowly reopen the state" during theCOVID-19 pandemic.[39]He also serves as an advisor on the COVID-19 Technology Task Force, a technology industry coalition founded in March 2020 collaborating on solutions to respond to and recover from the COVID-19 pandemic.[40]

Writings

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Dell's 1999 book,Direct from Dell: Strategies That Revolutionized an Industry(byHarperBusiness), is an account of his early life, his company's founding, growth and missteps, as well as lessons learned. The book was written in collaboration with Catherine Fredman.[41]

Dell's second book,Play Nice But Win: A CEO's Journey from Founder to Leader(by Portfolio), is a story of inside battles that defined him as a leader. The book was written in collaboration withJames Kaplan.[42]

Wealth

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In 1998, Dell founded MSD Capital L.P., later renamed DFO Management, to manage his family's investments.[43]

In February 2018, it was reported that in 2014, Dell had paid $100.5 million for Manhattan'sOne57penthouse, which was then a record for the most expensive home ever sold in the city.[44]

On March 1, 2024, Dell's net worth crossed the $100 billion mark, after Dell, Inc. reported an earnings beat, pushing the stock up 32% in the trading day and adding $13.7 billion into his fortune from $90.6 billion to $104.3 billion according toBloomberg Billionaires Index,making him the 12th-richest person at that time.[45][2][46]

Personal life

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Dell married Susan Lieberman on October 28, 1989, inAustin, Texas;the couple reside there with their four children.[47]

Philanthropy

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In 1999, Michael and Susan Dell established theMichael & Susan Dell Foundation,which focuses on causes related to health and education.[48]Dell is also behind the founding of the Dell Jewish Community Campus in theNorthwest Hillsneighborhood of Austin.[49]With his wife, Dell was the third-largest donor in America in 2023 with total giving of $975 million. Dell and his wife have been among the top three most generous donors in America previous in 2003 and 2017.[50]

References

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  1. ^"Surrounding oneself with the best talent".Industr.Archivedfrom the original on April 26, 2020.RetrievedJune 9,2020.
  2. ^ab"Bloomberg Billionaires Index: Michael Dell".Bloomberg.Archivedfrom the original on October 6, 2021.RetrievedNovember 5,2023.
  3. ^Liu, Phoebe (October 20, 2023)."Michael Dell Just Made His Biggest Ever Donation Of Dell Stock".Forbes.RetrievedFebruary 13,2024.
  4. ^Guglielmo, Connie (October 30, 2013)."Dell Officially Goes Private: Inside The Nastiest Tech Buyout Ever".Forbes.Archivedfrom the original on August 5, 2017.RetrievedSeptember 4,2017.
  5. ^"Dell returns to market with NYSE listing".Reuters.December 28, 2018.Archivedfrom the original on May 5, 2019.RetrievedMay 5,2019.
  6. ^Biography of Michael Dell.businessweek.com (From The Associated Press; 2007-01-31).
  7. ^Tweedie, Steven (May 9, 2015)."The yearbook photos of 13 famous titans of tech".Business Insider.RetrievedFebruary 13,2024.
  8. ^"Michael S. Dell".Academy of Achievement.RetrievedSeptember 6,2022.
  9. ^"Michael S. Dell Biography and Interview".www.achievement.org.American Academy of Achievement.Archivedfrom the original on February 24, 2019.RetrievedApril 2,2019.
  10. ^Dell, Michael; Catherine Fredman (1999).Direct from Dell: Strategies that Revolutionized an Industry.HarperBusiness.pp.6–7.ISBN0-88730-914-3.
  11. ^abCarey, Jr., Charles (2020).American Inventors, Entrepreneurs, and Business Visionaries, Revised Edition.New York, NY: Infobase Holdings, Inc. p. 134.ISBN978-1-4381-8214-8.
  12. ^"Michael Dell".Entrepreneur.October 9, 2008.Archivedfrom the original on June 29, 2020.RetrievedJune 9,2020.
  13. ^Dell, Michael; Catherine Fredman (1999).Direct from Dell: Strategies that Revolutionized an Industry.HarperBusiness. pp.4–5.ISBN0-88730-914-3.
  14. ^Dell, Michael (March 17, 2018)."First financial statement for @Dell. The one I used to convince my parents that it was OK for me to not go back to collegepic.twitter.com/kKuGDsyvYZ".@MichaelDell.Archivedfrom the original on December 14, 2022.RetrievedMarch 20,2018.
  15. ^"Proud Products: Michael Dell".March 15, 2008. Archived fromthe originalon March 15, 2008.RetrievedJuly 29,2020.
  16. ^Kirk Ladendorf. "Dell remembers his beginning while looking toward the future"Austin American-Statesman.November 27, 2011, pp. E1, E2.
  17. ^Dell, Michael; Catherine Fredman (1999).Direct from Dell: Strategies that Revolutionized an Industry.HarperBusiness. pp.9–10.ISBN0-88730-914-3.
  18. ^Larry Faulkner, President, University of Texas at Austin (2003).Michael Dell RemarksArchivedMarch 24, 2004, at theWayback Machine.dell.com
  19. ^Buchholz, Jan (April 29, 2014)."UT's famed high-rise dorm where Dell launched to get $4 million makeover".Statesman.com.Archivedfrom the original on June 23, 2016.RetrievedJanuary 5,2017.
  20. ^Biase, Stephen A. Di (2015).Applied Innovation: A Handbook.Chicago, IL: Premier Insights LLC. p. 379.ISBN978-1-5054-1687-9.
  21. ^Carbaugh, Robert (2014).Contemporary Economics: An Applications Approach\\\\(7th ed.). Oxon: Routledge. p. 92.ISBN978-0-7656-4177-9.
  22. ^Dell, Michael; Catherine Fredman (1999).Direct from Dell: Strategies that Revolutionized an Industry.HarperBusiness. pp.12–13.ISBN0-88730-914-3.
  23. ^Kessler, Michelle (March 4, 2004)."Dell founder passes torch to new CEO".USA Today.Archivedfrom the original on October 16, 2011.RetrievedJanuary 6,2010.
  24. ^Henry, John (February 18, 2022)."Morton Meyerson: A Business Legend Built in Fort Worth".Fort Worth Inc.RetrievedApril 11,2024.
  25. ^"Michael Dell".National Press Club Summary.National Public Radio. June 8, 2008. Archived fromthe originalon April 4, 2019.RetrievedApril 16,2010.
  26. ^"Dell eyes shipment milestone".CNET.No. 2 January 2002.RetrievedFebruary 13,2024.
  27. ^Dell, Michael; Catherine Fredman (1999).Direct from Dell: Strategies that Revolutionized an Industry.HarperBusiness. p. xiv.ISBN0-88730-914-3.
  28. ^Kanellos, Michael (April 1, 2001)."Dell beats Compaq for No. 1 ranking".CNET News.Archivedfrom the original on October 26, 2012.RetrievedApril 16,2010.
  29. ^"Dell Chief Replaced by Founder"ArchivedNovember 4, 2016, at theWayback Machine,New York Times.
  30. ^Guglielmo, Connie."Dell Officially Goes Private: Inside the Nastiest Tech Buyout Ever".Forbes.Archivedfrom the original on August 5, 2017.RetrievedOctober 23,2016.
  31. ^"Dell agrees $67bn EMC takeover".BBC News.October 12, 2015.Archivedfrom the original on July 18, 2018.RetrievedJanuary 11,2017.
  32. ^"Dell to Buy EMC in Deal Worth About $67 Billion".Bloomberg.com.October 12, 2015.Archivedfrom the original on January 13, 2017.RetrievedJanuary 11,2017.
  33. ^"Historic Dell and EMC Merger Complete; Forms World's Largest Privately-Controlled Tech Company | Business Wire".www.businesswire.com.September 7, 2016.Archivedfrom the original on November 4, 2016.RetrievedJanuary 11,2017.
  34. ^ab"Dell Inc., Michael S. Dell, Kevin B. Rollins, James M. Schneider, Leslie L. Jackson, Nicholas A.R. Dunning".Sec.gov. July 22, 2010.Archivedfrom the original on July 9, 2017.RetrievedJanuary 26,2011.
  35. ^Richman, Tom (January 1, 1990)."The Entrepreneur of the Year".Inc.Archivedfrom the original on March 31, 2010.RetrievedApril 16,2010.
  36. ^"Golden Plate Awardees of the American Academy of Achievement".www.achievement.org.American Academy of Achievement.Archivedfrom the original on December 15, 2016.RetrievedSeptember 14,2020.
  37. ^"MICHAEL S. DELL".Franklin Institute.October 3, 2014.Archivedfrom the original on December 20, 2016.RetrievedDecember 19,2016.
  38. ^"Michael Dell".Dell Inc.Archivedfrom the original on December 20, 2016.RetrievedApril 28,2017.
  39. ^"These are the experts, leaders working with Gov. Abbott's strike force to reopen Texas".khou.com.April 17, 2020.Archivedfrom the original on April 25, 2020.RetrievedApril 21,2020.
  40. ^Jacox, Madi (February 12, 2021)."Leadership".COVID-19 Technology Task Force.Archivedfrom the original on December 24, 2022.RetrievedDecember 25,2022.
  41. ^Dell, Michael; Catherine Fredman (1999).Direct from Dell: Strategies that Revolutionized an Industry.HarperBusiness.ISBN0-88730-914-3.
  42. ^"Reading recommendations: Paul Polman and Michael Dell have new books out".Fortune.Archivedfrom the original on October 6, 2021.RetrievedOctober 6,2021.
  43. ^Weiss, Miles (January 31, 2013)."Dell Keeps LBO Financing in the Family With MSD Capital".Bloomberg.com.RetrievedFebruary 13,2024.
  44. ^Clarke, Katherine (February 22, 2018)."Michael Dell Paid a Record $100.47 Million for Manhattan's One57 Penthouse".The Wall Street Journal.The New York Times, New York City, United States.Archivedfrom the original on February 22, 2018.RetrievedFebruary 22,2018.
  45. ^Galpotthawela, Vernal; Pendleton, Devon (March 1, 2024)."Michael Dell's net worth just vaulted past $100 billion for the first time, making him the world's 12th-richest person".Fortune.RetrievedMarch 5,2024.
  46. ^"Michael Dell's net worth just vaulted past $100 billion for the first time, making him the world's 12th-richest person".Bloomberg.Archivedfrom the original on March 2, 2024.RetrievedMarch 1,2024.
  47. ^COLLOFF, PAMELA (July 31, 2000)."Suddenly Susan".Texas Monthly.Archivedfrom the original on November 12, 2016.RetrievedOctober 20,2016.
  48. ^Liu, Phoebe (October 20, 2023)."Michael Dell Just Made His Biggest Ever Donation Of Dell Stock".Forbes.RetrievedMarch 5,2024.
  49. ^Gwynne, S.C. (February 7, 2013)."Dell's Great Success Story".Texas Monthly.Archivedfrom the original on September 29, 2017.RetrievedOctober 1,2017.
  50. ^Di Mento, Maria (March 5, 2024)."Philanthropy 50".Chronicle of Philanthropy.RetrievedMay 3,2024.

Further reading

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