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Print 40 comment(s) - last by retrospooty.. on Feb 7 at 11:18 AM

No word on whether or not the deal was taken at this time

Over the last week or so there has been a lot of buzz surrounding a leveraged buyout of computer manufacturer Dell by a consortium led by company founder Michael Dell. Michael Dell has been working with Silver Lake Partners and Microsoft to take the company private.

Michael Dell has previously been tipped to be using his current 16% ownership in the computer company he founded and as much as $1 billion of his own money in a bid to become the majority owner if the buyout goes through. A source that claims to be familiar with the negotiations says that the Dell board voted last night on whether or not to take the buyout offer.

For its part, Microsoft offered up this satement:

Microsoft has provided a $2 billion loan to the group that has proposed to take Dell private. Microsoft is committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future.

We're in an industry that is constantly evolving. As always, we will continue to look for opportunities to support partners who are committed to innovating and driving business for their devices and services built on the Microsoft platform.

Some analysts believe that taking Dell Inc. private will allow the company to operate more efficiently and take its doings out of the public eye making acquisitions easier to accomplish. Dell Inc. has been a publicly traded company for nearly 25 years. If the buyout deal happens, the transaction will be the largest leveraged buyout in the technology industry since the global financial crisis hit.

The Wall Street Journal reports that the final deal is worth about $23 billion.
 
Dell Inc. was once the world's largest computer maker with a market capitalization of over $100 billion. The company has had a difficult time competing in the ever-changing computer industry and has seen its market share dwindle -- it is now the third largest computer maker in the world. No official comments have been offered on the buyout by any of the interested parties at this time.

Sources: Bloomberg, Wall Street Journal, Microsoft



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RE: Meh
By retrospooty on 2/5/2013 1:02:17 PM , Rating: 2
"The reason for the buyout is to make the company more nimble to market conditions and allow it to innovate where shareholders are unwilling to go."

Yup... Just look at HP and teh complete "Mucking Forons" on the board that basically destroyed the company that was. It wasnt bad CEO after bad CEO... It was the board hiring bad CEO after bad CEO and meddling.


RE: Meh
By TakinYourPoints on 2/6/2013 5:18:25 AM , Rating: 2
Axing Mark Hurd was maybe the worst thing to happen to the company. All the work with Palm, completely undermined. Such a huge loss of talent and technology too, for how long did WebOS have the best method for mobile multitasking?

The decisions of Apotheker (Autonomy too, wtf), mindboggling.


RE: Meh
By retrospooty on 2/6/2013 7:35:07 AM , Rating: 2
Ya, I still have fantasies about a modern Web OS. Palm's hardware always sucked, but picture this... Web OS, 2 years laters with lots of polish, speed enhancements ala IOS/Jellybean and modern hardware... Drool.

Such a waste.


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