Longtime PC makers Dell has gone private in a deal worth $24.4 billion, as one of the top PC vendors feel the pinch of the post-PC era. CEO and founder Michael Dell was reported to have lost enthusiasm in the running of the company, and for the company, which has seen a slide in sales against rivals HP and Lenovo, privatisation eases the pressure of dealing with the quarterly shareholder meetings.
Interestingly, part of the $24.4 billion deal is a loan from software giants Microsoft. In its official statement, the company announced that the $2b loan showed the company’s commitment to the “long-term success of the entire PC ecosystem”. Privately, Microsoft is said to be leveraging itself against a more mobile-friendly market, and secure its dominance in the enterprise market.
The $24.4b deal will see shareholders get $13.65 per share, which is a 25% premium from the $10.88 closing price on January 11 – the date before the rumours began circulating that Dell was seriously looking into privatising the company.
(Source: The Verge)