Dell Goes Private Thanks to $2 Billion from MicrosoftCategory: General News
Posted: February 5, 2013 06:48PM
Computer giant Dell has announced a new deal that will see the company go private, thanks in part to a little backing from Microsoft. Founder and CEO Michael Dell and investment firm Silver Lake are set to acquire Dell for $24.4 billion, with a $2b loan from Microsoft. Michael Dell will continue serving as chairman and CEO of the company he started, although how much influence Microsoft will have is unknown. Silver Lake, on the other hand, has "significant experience in the technology sector," so the future could be very bright for Dell. Shareholders receive $13.65 per share of Dell stock from the deal, which is a 35% increase over where stocks where on January 11 before the deal was leaked. As for the deal itself, Mr. Dell first proposed it back in August 2012 to the Board of Directors, and then recused himself from the "Special Committee" overseeing negotiations.
The transaction is expected to close in the second quarter of Dell's 2014 fiscal year, but there shouldn't be any complications along the way.