“Dell Inc is edging closer to an agreement to sell itself to a buyout consortium led by Michael Dell, its founder and chief executive, and private equity firm Silver Lake Partners in a deal that could top $24 billion, people familiar with the matter said on Friday,” Nadia Damouni, Soyoung Kim and Greg Roumeliotis report for Reuters. “The buyout consortium is negotiating taking Dell private at $13 to $14 per share, two of the people said. This translates into an equity valuation for the Round Rock, Texas-based company of between $22.6 billion and $24.4 billion.”
Damouni, Kim and Roumeliotis report, “The transaction is set to be finalized over the weekend and the timetable could still slip, the people cautioned, asking not to be named because the matter is not public… As part of the transaction, Michael Dell will contribute his existing stake of almost 16 percent in the company toward gaining majority ownership, sources close to the matter have said. The deal would mark the largest leveraged buyout since the global financial crisis. Going private would allow Dell, which has been trying to become a one-stop shop for corporate technology needs as the PC market shrinks, to conduct that difficult makeover away from public scrutiny.”
Read more in the full article here.
MacDailyNews Take: Ah, there’s nothing like bathing in a pool of schadenfreude before tapping the TGIF keg!
[Thanks to MacDailyNews Reader “Ed B. for the heads up.]
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Karma is a bitch!
I know right?! oh how the mighty’s………eyes have grown even closer together.
Michael Dell is evolving into a cyclops.
Perhaps Dell can use this time to focus on a “Singular Vision”
Funny how the rabid drooling Apple fan boys laugh at Dell now, yet at the same time, want Apple to go private.
Once Dell is private Wall Street will have more time to whinge over Apple.
Then the diaper wearing fan boys can wish Apple was Dell.
I guess Dell is getting tired and sick of Wall Street’s ANAL-ysts… Perhaps, Apple should consider the same move?! no?!
my 2 cents…
Yes! I would love that. It should be about making great products and not to worry about the bottom line for wall street
Truth really can be strange than fiction! Who would have believed this would happen one day to Dell? The headlines marking each time apple was X times larger than Dell must have gotten to him…
“Who would have believed” ?
Me. I work in a school system with 3,000 thin client Dell machines.
The only saving grace for them is that they require a lot of maintenance, therefore the IT techs have a lot of experience with repeated issues, therefore they are “easy” to work on!
See how life can be made so simple?
Cornell University just wallows in Dells, with the Tech Department demanding they be purchased as we watch the new Bill and Melinda Gates Hall rise on campus as we speak. The IT dept. loves Dell, it’s job security while the staff stay counterproductive on old OS’s that run old Winblows software. Crashes, fighting virus and spyware, rebuilding, downtime, slow processing, and suffering through rewritten document names for files transferred to servers who’s OS is so crude it can’t handle a long title and s0 renames it with gibberish characters. But hey, we got that new building going for us.
Sweet, sweet vengeance. Never gets old.
“Hey Mikey, taking your marbles back and refusing to play?”
Ahh the contraction before the beautiful super-nova blows things to smithereenies.
Actually no he isn’t. He is actually BETTING most of his money on the company. He has more of his own money committed to Dell than Steve Jobs ever did at Apple.
I hope we keep in mind that Apple’s successes these past 15 years wasn’t intended to teach Dell a lesson.
I hope Apple keeps going on to bigger successes and never has to ever look back again.
Actually, back in the day, Steve Jobs did indeed tell Dell that Apple had them ‘in their sights’. I reckon this is mission accomplished. 😉
Going private would allow Dell, which has been trying to become a one-stop shop for corporate technology needs as the PC market shrinks, to conduct that difficult makeover away from public scrutiny.
What’s Mikey trying to hide away from “public scrutiny” here?
Mickey is doing what he would do if he was the CEO of Dell …..
Geewhiz does anybody remember his speech in 1998, Micky said what you would do if he was CEO of Dell ….. Sell the company and return the money to the shareholders that’s what Micky said and he was CEO of Dell Computer …..
Thought it was Dell but when I looked up, it was Apple ….. My mistake sorry guys / girls …. My error …..
Hey Micky, what happened bro?
Irony is a bitch.
Dell is trying to remake themselves as a cloud hosting company, however, every person I know (close to a dozen) who has used them for their company has said that they are absolutely TERRIBLE in every way shape and form.
If it happens, I wish Steve was here to see all of this. hahaha stupid idiot!
I can not see how the “investors” who are taking Dell private can get a good return on their investment.
Secrets? Possibly. But then don’t those have to be discussed with existing shareholders. Someone has already said Michael Dell is conflicted in this transaction.
Unfortunately for Dell’s employees, this could point to another round of RIF (only this time and onward, number of layoff will be kept secret) is coming.
any thought?
If this is indeed true then you have to give it to Dell that he did walk the talk. That in itself does take a lot of guts. But I will have my reservation of a turnaround of dell or any PC manufacturers in the wake of the iOS (maybe to a certain extent Android) assault on them.
One thing is certain, If PC or even Microsoft will continue to fall by the wayside until they work to make things simpler to the consumers with regards to Software licensing and Hardware warranty, which in its present form is a living nightmare for windows PC owners.
How ironic. Wow!
This is Dell hanging onto Windows coattails and not having a second alternative to it. Next up is Microsoft not knowing where to properly put their marbles. (Hint #1: In order to effectively sell applications, you need to sell them where the customers are. Hint #2: It’s not on a Surface.)
Don’t listen to these people in these forums, Ballmer! They’re trying to trick you! You’re knee deep in shit and you have stupid colorful blocks parading as an operating system and your company is going to die.
The way things have been going for Apple stock lately they should consider doing the same.
+1
Steve Jobs is watching from an (i)cloud and smiling, saying nothing.
I guess michael dell took the advice he once gave to Apple. 😀 “give the money back to the shareholders!”
Looking forward to “Apple now worth infinite times Dell’s value” post on MDN.
——RM
Hmmm. Not sure Dell and value should be in the same sentence
Too bad Steve can’t be here to thoroughly enjoy this event when it happens.
“to conduct that difficult makeover away from public scrutiny”
Rearranging the deck chairs on Titanic won’t help.
You can either come up with products that people want to pay for (not give away) or you can’t. Having shareholders doesn’t help or hurt in that effort. Look at Apple.