Dell Going Private in $24B Move
Founder looks to overhaul 30-year-old firm
By Matt Cantor, Newser User
Posted Feb 5, 2013 7:47 AM CST
Updated Feb 5, 2013 8:50 AM CST
Michael Dell, Chairman and CEO of Dell Inc., speaks during a press conference in Beijing, China, Thursday, March 26, 2009.   (AP Photo/Alexander F. Yuan)

(Newser) – Dell has reached a deal to go private, the company has announced. Shareholders will receive some $13.65 per share in a $24 billion deal, the New York Times reports, which marks a 25% premium over Dell's January share price. The privatization deal with Microsoft and private equity company Silver Lake Partners is the biggest since the financial crisis, the Wall Street Journal notes. Once the biggest PC maker on the planet, the struggling Dell is now third; the move comes as founder and CEO Michael Dell hopes to retool his company.

The deal incorporates Michael Dell's own 16% stake, some $700 million from his investment company, $1 billion from Silver Lake, and a $2 billion Microsoft investment. In return, Dell will likely work more closely with Windows, as was previously rumored. Meanwhile, four banks are backing the deal with $15 billion in evenly-divided debt. For Michael Dell, the company's floundering image is central to the overhaul, the Journal adds: "It's pretty simple: His name is on the door," says a former exec.

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Showing 3 of 10 comments
lvan
Feb 6, 2013 3:52 AM CST
Dell will likely work more closely with Windows yeah because all them Linuxes, Solarises and Netwares are just too much for brilliant tech support.
nym-acct
Feb 6, 2013 12:43 AM CST
Dell was always the meat in the Wintel sandwich. Will be interesting to see if he can make Dell a player in the tablet market for Wintel.
Heat_Lightnin
Feb 5, 2013 1:51 PM CST
Moving the tech support to India was a brilliant move in maintaining the reputation of Dell's quality customer service. -NOT! -from an ex-Dell Tech Support Specialist.