Dell Estimated to Cost Up To $25 Billion
Dell is reportedly interested in accepting a management buyout offer at a price of $13 to $14 per share, which would put the purchase price of the company into a range of $22 to $25 billion.
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According to the Wall Street Journal, Silver Lake Partners is leading the negotiations from the investor side and plans on borrowing up to $15 billion from banks to finance the deal. The report suggests that Dell founder Michael Dell will not be cashing in its share holdings, but use their current value of about $3.5 billion for a stake in the buyout. Silver Lake will need at least $2 billion from its own sources to purchase Dell.
The speculated reason for the buyout is the ability to take Dell private again and allow Michael Dell to restructure the company faster than it would be possible if the company is publicly traded and change is slowed down by the interests of other share holders. If the buyout happens, Dell could be seeing the most dramatic change in business and product strategy since its founding in 1984.
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mbreslin1954 "Dell founder Michael Dell will not be cashing in its share holdings..."Reply
Dude, Michael Dell is not an "it", he's a "his". -
A Bad Day Hm, a corporation being converted back into a privately run one. That's not an everyday occurrence.Reply -
calmstateofmind mbreslin1954"Dell founder Michael Dell will not be cashing in its share holdings..."Dude, Michael Dell is not an "it", he's a "his".Reply
He means to say that Mr Dell is making the decision on what to do with the shares that Dell, the company, owns. -
QEFX WaitReply
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Dell still exists? You learn something new everyday. I thought they went the way of the Packard Bell. -
mbreslin1954 I like Dell laptops, when they're on sale. Our family has a couple, along with a couple of Acers.Reply -
A Bad Day mbreslin1954I like Dell laptops, when they're on sale. Our family has a couple, along with a couple of Acers.Reply
Just avoid their printers...
Actually, avoid pretty much every single printer except for the ones consistently given 5-stars by Consumer Report and other legit 3rd parties.
(Still haven't forgiven any company for deciding to not add driver support for Windows 8 to their 2012 model printers) -
southernshark I am sure this will go as well as the other private equity deals, such as Cerberus' buy up of Chrysler and Bushmaster............Reply -
samwelaye A Bad Day(Still haven't forgiven any company for deciding to not add driver support for Windows 8 to their 2012 model printers)Reply
When I was shopping around for a printer, every salesman was telling me dont buy brother buy HP. Bought a brother instead because it had the requirements I needed and cheaper ink cause I often buy it on eBay. Day after win8 was released, they had drivers for it up on the site. Even winRT -
dragonlord12832 I've had the opportunity to go through Dell's 10-k reports recently. From the look of things they are a VERY well ran company; it is surprising that they feel the need to 'restructure.'Reply -
dragonlord12832 QEFXWaitWait WaitWaitDell still exists? You learn something new everyday. I thought they went the way of the Packard Bell.Reply
Actually, Packard Bell is also still around. They are owned by Acer and are sold in Europe.