Dell Confirms: The Computer Giant is Going Private

February 5, 2013  |  

Michael Dell. Cliff Owen/AP Images for Dell

Michael Dell says he’s going to buy back $24.4 billion in shares from stockholders, taking the company private. The buyout will take place in partnership with Silver Lake Partners.

It was only hours ago that we reported the possibility of this deal taking place.

In addition to this deal, which will price Dell stock at $13.65 per share, Microsoft will front the company a $2 billion loan. According to All Things D, the relationship between the two companies began in 2011 when Microsoft bought Skype for $8.5 billion. A number of investment banks and Dell’s own personal investment firm, MSD Capital, are also involved in the deal. There’s a short period under which a better offer could be accepted, but All Things D doesn’t think a better one is coming.

Dell will stay on as chairman and CEO. In a statement he said:

We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise. Dell has made solid progress executing this strategy over the past four years, but we recognize that it will still take more time, investment and patience, and I believe our efforts will be better supported by partnering with Silver Lake in our shared vision. I am committed to this journey and I have put a substantial amount of my own capital at risk together with Silver Lake, a world-class investor with an outstanding reputation. We are committed to delivering an unmatched customer experience and excited to pursue the path ahead.”

Trending on MadameNoire

View Comments
Comment Disclaimer: Comments that contain profane or derogatory language, video links or exceed 200 words will require approval by a moderator before appearing in the comment section. XOXO-MN
blog comments powered by Disqus