We recently reported that one of the leading computer manufacturing giants, Dell, was finalizing a deal to go private. The deal was being brought together by Dell’s CEO Michael Dell, an equity fund and Microsoft. The company has now sealed the deal, formally announcing it through a press release.
In our earlier post, we also mentioned that Microsoft may be pulling in with its cash to furnish enough money for the buyout. As it happens, Microsoft did indeed contribute a $2 billion loan for Dell.
Commenting on its contribution, Microsoft stated, “Microsoft has provided a $2 billion loan to the group that has proposed to take Dell private. 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.”
It’s slightly sad to see a company which was once among the most successful tech entities taking such a path. However, in the face of an onslaught of mobile devices and the sharply declining PC sales, Dell took the wise course. The total buyout raked in $24.4 billion, leaving the shareholders $13.65 per share in cash, which is not a bad deal at all for the investors.
The company is now owned by Michael Dell and Silver Lake, the equity firm that furnished much of the capital needed for the huge buyout. However, the fact that Michael Dell has invested so much of his own money in this move lends some hope that the company may after all be restored to its glory.