“Dell Inc. on Tuesday said it reached a deal to take itself private, in a buyout that marks an unofficial end to the era when a handful of young entrepreneurs made PCs the dominant computing device,” Anupreeta Das and Ben Worthen report for The Wall Street Journal.
“Under the terms of the agreement, Dell stockholders will receive $13.65 in cash for each share of Dell common stock they hold, in a transaction valued at approximately $24.4 billion,” Das and Worthen report. “The price represents a premium of 25% over Dell’s closing share price of $10.88 on Jan. 11, 2013, the last trading day before rumors of a possible going-private transaction were first published.”
Das and Worthen report, “The transaction will be financed through a combination of cash and equity contributed by Mr. Dell, cash funded by investment funds affiliated with Silver Lake, cash invested by MSD Capital, L.P., a $2 billion loan from Microsoft, rollover of existing debt, as well as debt financing that has been committed by BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets, and cash on hand.”
Read more in the full article here.
Dell “sits in third place in a PC market in decline, having failed to capture the recent booms in smartphones or tablets,” Tim Bradshaw reports for The Financial Times. “After Mr Dell stepped back as chief executive in 2004 and handed the reins to Kevin Rollins, the PC maker was hit by setback after setback: laptops with faulty batteries, missed Wall Street forecasts, falling margins and an SEC investigation into accounting fraud related to its partnership with Intel, which eventually led to a $100m settlement.”
“By the time Mr Dell returned to lead the company in February 2007, Apple had just unveiled its iPhone,” Bradshaw reports. “Although Mr Dell proudly pronounced that ‘“it feels like 1984 and I am starting over again,’ the post-PC age had already dawned.”
Read more in the full article here.
MacDailyNews Take: Once Dell shareholders approve the deal, Michael Dell will have officially followed the advice he once gave to Apple: “Shut it down and give the money back to the shareholders.”
The irony doesn’t get much thicker.
This will also mark the end our long-running, “Apple now worth X times Dell’s market value” articles.
Boom, you got him, Steve!
[Thanks to MacDailyNews Readers “Fred Mertz” and “Jack F.” for the heads up.]
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At least he follows his own advice.