How much is Michael Dell worth?
|Net Worth:||$50 Billion|
|Date of Birth:||February 23, 1965 (age 57)|
|Country:||United States of America|
About Michael Dell
I remember reading a quote by Michael Dell where he was explaining that he enjoys doing the boring tasks just as much as the challenging or enjoyable ones when he is building his business. He enjoys the boring or tedious or plain difficult tasks because he knows what he is building. He can see it in his mind and he is enjoying it mentally, or at least that is what I took from it.
At the age of seven, Dell bought his first calculator, and in his junior year of high school, he first came across a teletype machine. He was always very interested in computers and he obtained his first computer, an Apple II, at the age of 15, after experimenting with computers at Radio Shack. He immediately disassembled the machine to see how it operated. He was also very talented at business. He earned $18,000 that summer selling newspaper subscriptions to targeted populations rather than just making cold calls. He soon employed a number of people to help, and at the age of 19, Dell left the University of Texas after making a gross profit of almost $200,000.
At the University of Texas, where he was a first-year pre-med student, Dell established a side business creating and marketing upgrade kits for personal computers. Later, the company sold between $50,000 and $80,000 worth of PC upgrades, kits, and other components while operating out of a condominium.
The business, in 1984, employed a small number of order takers, a smaller number of order fillers, and, as Dell recalled, a $1,000 manufacturing team made up of “three guys with screwdrivers sitting at six-foot tables”.
The company expanded so quickly in just four years that its first public offering (IPO) in 1988 increased its value to an astounding $30 million. Then, with the release of the Turbo PC, Dell’s first internally developed computer, the company completely changed the computer market in 1985. This revolutionary device was one of the most economical computers available at the time, retailing for about $795. Due to the Turbo PC’s enormous success, Dell was able to become a significant player in the computer business.
At the age of 27, he was named the youngest CEO of a business included in Fortune magazine’s top 500 firms in 1992. In 1996, the same year his business introduced its first servers, Dell began selling computers online. Soon Dell Inc. announced daily sales from Dell.com of roughly $1 million.
Dell established MSD Capital L.P. in 1998 to oversee the investments of his family. Real estate, private equity, and publicly traded securities were already part of his investment activities. On March 4, 2004, Kevin Rollins, who had previously served as president and COO, was named president and CEO of Dell Inc. Dell resigned as CEO but continued to serve as board chairman. Additionally, Dell was given the American Academy of Achievement’s 1998 Golden Plate Award.
In the book Direct from Dell: Strategies That Revolutionized an Industry, published in 1999, Dell discusses his early life, the birth of his company, its growth, mistakes, and lessons gained. Together with Catherine Fredman, the book was written and it is still available today via Amazon.
The Michael and Susan Dell Foundation was founded in 1999 by Michael and Susan Dell. It supports a variety of causes, including grants for urban education, children’s health, and family economic stability. Currently, the foundation is managing assets worth approximately $466 million.
In recognition of his contributions to Ireland, the neighborhoods, and educational endeavors, Dell was awarded an honorary doctorate in economic science from the University of Limerick in 2002. The foundation had also given three University of Texas-affiliated health-related organizations a total of $50 million in grants in 2006.
In order to resolve SEC charges of disclosure and accounting fraud relating to unreported payments from Intel Corporation, Dell Inc. consented to pay a $100 million fine in July 2010. Former CFO James Schneider agreed to pay $3 million, former CEO Michael Dell paid $4 million, and former CEO Kevin Rollins paid $4 million apiece.
By 2011, Dell’s foundation had given more than $650 million to community projects and children’s issues in South Africa, India, and the United States. That year, with 243.35 million shares of Dell stock valued at $3.5 billion, Michael owned 12% of the business. His estimated $10 billion in remaining wealth was managed by MSD Capital, which bears his initials, and is invested in various businesses.
The Michael and Susan Dell Foundation gave $50 million to support medical education in 2012. In 2013, Michael Dell took Dell, Inc. private with the aid of Silver Lake Partners, Microsoft, and a group of lenders. His offer to take Dell Inc. private for $24.4 billion, the largest management buyout since the Great Recession, was made public in January 2013.
The Bower Award for Business Leadership from the Franklin Institute was awarded to him in 2013. The foundation committed an extra $50 million that year to help the University of Texas at Austin launch the Dell Medical School.
He gave the Friends of the Israel Defense Forces $1.8 million in 2014. In 2016, the Dell Medical School opened its doors to new students. It was revealed in February 2018 that Dell purchased Manhattan’s One57 penthouse in 2014 for $100.5 million, setting a record for the most expensive house ever sold in the neighborhood.
In December 2018, Dell Inc. went public once more.
Dell Inc. declared its intention to buy the enterprise software and storage firm EMC Corporation on October 12, 2015. It has been dubbed the “highest-valued tech acquisition in history” at $67 billion. Two years later, Dell, who was born and raised in Houston, gave $36 million to aid with recovery efforts during Hurricane Harvey in 2017.
His foundation, which focuses on child poverty and offers both impact investments and charitable donations, received a $1 billion grant from Dell in May 2017. By April 2021, Forbes pegged Dell’s net worth at $50.4 billion.
The MSDF has given $1.23 billion to nonprofit organizations and social enterprises in the US, India, and South Africa since 1999. According to the Bloomberg Billionaires Index, he had a net worth of $45 billion as of October 2022, placing him as the 24th richest person in the world.