Linked by Thom Holwerda on Tue 5th Feb 2013 14:29 UTC
Hardware, Embedded Systems "Dell today announced it has signed a definitive merger agreement under which Michael Dell, Dell's Founder, Chairman and Chief Executive Officer, in partnership with global technology investment firm Silver Lake, will acquire Dell." So, Dell has gone private, and Microsoft has contributed a $2 billion loan to the deal.
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So...
by PJBonoVox on Tue 5th Feb 2013 14:43 UTC
PJBonoVox
Member since:
2006-08-14

I don't really know enough about company ownership to understand the purpose of this. Can someone explain what this might mean for the future direction of Dell?

Reply Score: 2

RE: So...
by sukru on Tue 5th Feb 2013 14:52 in reply to "So..."
sukru Member since:
2006-11-19

I think this move will allow Micheal Dell to run the company more freely.

Reply Parent Score: 4

RE[2]: So...
by Lennie on Tue 5th Feb 2013 15:00 in reply to "RE: So..."
Lennie Member since:
2007-09-22

Yes, that was also was my impression, a lot less investors (thus different opinions) to please.

Reply Parent Score: 2

sgtrock Member since:
2011-05-13

...and Microsoft to help create the funding. That's kind of like voluntarily putting on a set of handcuffs, leg irons, two dog leashes, handing a leash to two different people going in different directions, then trying to maintain your balance while walking a tightrope. Blindfolded. Without a net.

Edited 2013-02-05 15:22 UTC

Reply Parent Score: 6

RE: So...
by malxau on Tue 5th Feb 2013 15:10 in reply to "So..."
malxau Member since:
2005-12-04

Obviously it's speculative, but this kind of transaction often goes badly. The company will buy out existing shareholders with a combination of cash on hand and new debt. The result is a company with fewer owners, but also fewer options: it is no longer financially in a position to embark on any serious investments, although it can make cuts into existing operations.

Reply Parent Score: 3