WSJ: Dell reportedly nearing $23B buyout deal to go private

WSJ: Dell reportedly nearing $23B buyout deal to go private

Summary: Another report has surfaced that the PC maker has neared a multi-billion deal to go private, but Dell isn't there yet.


Dell is reportedly close to finalizing a deal to go private -- but it's still not there yet.

The Wall Street Journal reported on Monday that the PC maker is nearing a buyout deal worth $23 billion, or between $13.50 and $13.75 per share.

According to the WSJ, here's how the plan is supposed to breakdown:

  • CEO Michael Dell will contribute his 16 percent stake, which is valued at $3.7 billion.
  • An investment firm he controls will contribute another $700 million.
  • Microsoft will invest $2 billion in the form of a "subordinated debenture," which is said to be less risky than common stock.
  • Private equity firm Silver Lake Partners will invest more than $1 billion.
  • At least four banks are said to be arranging $15 billion in debt to help fund the deal.

To recall, reports started circulating in January that the Round Rock, Texas-based corporation was mulling over reverting to operating as a private company.

At the time, Bloomberg reported that Dell was in buyout talks with at least two private equity firms and that it also reached out to "several large banks" about potential financing for the deal.

As recently as last Friday, Reuters wrote that the Dell buyout would be announced this week after being fine-tuned during the weekend.

However, it is important to note that Dell has not commented publicly on the matter, and that all of these reports are based on unnamed sources.

Nevertheless, based on numerous -- and now detailed -- reports circulating the financial sphere for weeks now, it appears to be all but a done deal at this point.

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

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  • The Dell hell freezes over

    In the current market environment only a company that innovates would survive. Dell as a company or Mr Dell as a person do not hv this trait in their DNA. They were just assemblers of the PC invented by IBM. So however you look at it, in the long run Dell is dead. This buyout thing is just a charade. It will eventually be broken into parts and sold off.