Dell Goes Private, Microsoft Loans Some Help
Subject: Editorial, General Tech, Systems, Mobile | February 5, 2013 - 10:10 PM | Scott Michaud
Dell, dude, you're getting a Dell!
So it is official that Dell is going private. Michael Dell, CEO, as well as: Silver Lake, MSD Capital, several banks, and Dell itself will buy back stocks from investors 25% above the January 11th trading price. The whole deal would be worth $24.4 billion USD.
Going private allows the company to make big shifts in their business without answering to investors on a quarterly basis. We can see how being a publicly traded company seems to hinder businesses after they grow beyond what a cash infusion can assist. Even Apple finds it necessary to keep an absolutely gigantic pile of cash to play with, only recently paying dividends to investors.
Also contributing to the buyback, as heavily reported, is a $2 billion USD loan from Microsoft. While it sounds like a lot in isolation, it is only just over 8% of the whole deal. All you really can pull is that it seems like Microsoft supports Dell in their decision and is putting their money where their intentions are.