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Dell, the computer manufacturer, announced Tuesday morning that it is going private. The $24.4 billion buyout was led by the company’s founder, Michael Dell, investment group Silver Lake Partners and Microsoft.
It was rumored that the buyout would occur last month, reports The Wall Street Journal. Shareholders will each receive $13.65, which is 25 percent above what Dell shares sold for at closing on Jan. 11, the last day before the rumors were published.
Michael Dell founded the company in 1984 in his college dorm room and the company is now one of the largest personal computer makers in the world, notes The New York Times.
However, as the iPad and smartphones continue to take up more of the electronics market, Dell’s dominance has eroded. Microsoft joined the group to add some financial muscle to save the company. Microsoft loaned $2 billion to help the buyout. BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets have also committed debt financing to help finance the buyout, notes WSJ.
The NY Times reports that Dell’s board met and voted on the deal Monday night.