Report: Dell said to be considering buyout and going private

Summary:According to a new report, Dell is looking into going back to being a private company.

As several high-profile tech IPOs crashed and burned last year, could the new trend in 2013 be going private? We'll have to wait and see, but it's possible we could be seeing at least one major PC maker doing just that.

According to a new report from Bloomberg on Monday, Dell is said to be in buyout talks with at least two private equity firms. Furthermore, Dell has been said to have reached out to "several large banks" about potential financing for the deal.

Although no sources were named beyond "two people with knowledge of the matter," Dell shares on the Nasdaq were initially up by approximately 12 percent shortly after the Bloomberg story was published.

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Bloomberg also cited that the company's CEO, Michael Dell, owns approximately 16 percent of the company.

Thus, that provides extra fodder for the switch to operating as a private company because it would supposedly make it "easier for firms to put together equity financing for the deal."

ZDNet reached out to Dell for comment about the report. David Frink, a spokesperson for Dell, replied that the Round Rock, Texas-based corporation doesn't comment on rumor or speculation.

Screenshot via Nasdaq

Topics: Dell, Hardware, Laptops, PCs, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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