Dell hasn’t really set the world on fire as of late. So it comes as no shock to me that they’ve been taken private by Michael Dell in a massive $24.4 billion deal:
The complex agreement announced Tuesday will allow Dell’s management to attempt a company turnaround away from the glare and financial pressures of Wall Street. Dell stockholders will be paid $13.65 per share to leave the company on its own.
That’s better than $11 level the stock was hovering at before word of the buyout talks trickled out last month, but a steep markdown from the shares’ price of $26 less than five years ago.
Once the sale to a group of investors that includes investment firm Silver Lake is finalized, Dell’s stock will stop trading on the Nasdaq nearly 25 years after the Round Rock, Texas, company raised $30 million in an initial public offering of stock. Microsoft Corp. is investing in the deal with a $2 billion loan.
Hmmm…. Microsoft Is in on this? You have to wonder why? Any ideas?
Oh well, to make it interesting, HP put out a press release to taunt their bitter rivals:
“Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell’s ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb. We believe Dell’s customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity.”
This should be fun to watch.
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This entry was posted on February 5, 2013 at 7:48 pm and is filed under Commentary with tags Dell. You can follow any responses to this entry through the RSS 2.0 feed.
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Dell Taken Private By Founder… Among Others…. For $24.4 Billion
Dell hasn’t really set the world on fire as of late. So it comes as no shock to me that they’ve been taken private by Michael Dell in a massive $24.4 billion deal:
The complex agreement announced Tuesday will allow Dell’s management to attempt a company turnaround away from the glare and financial pressures of Wall Street. Dell stockholders will be paid $13.65 per share to leave the company on its own.
That’s better than $11 level the stock was hovering at before word of the buyout talks trickled out last month, but a steep markdown from the shares’ price of $26 less than five years ago.
Once the sale to a group of investors that includes investment firm Silver Lake is finalized, Dell’s stock will stop trading on the Nasdaq nearly 25 years after the Round Rock, Texas, company raised $30 million in an initial public offering of stock. Microsoft Corp. is investing in the deal with a $2 billion loan.
Hmmm…. Microsoft Is in on this? You have to wonder why? Any ideas?
Oh well, to make it interesting, HP put out a press release to taunt their bitter rivals:
“Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell’s ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb. We believe Dell’s customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity.”
This should be fun to watch.
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This entry was posted on February 5, 2013 at 7:48 pm and is filed under Commentary with tags Dell. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.