It has been reported over the last few weeks that Dell has decided to go private. Now Reuters claims that the deal might be close to fruition and might just be announced as early as Monday, February 4th. Reuters says that “two people familiar with the matter,” have informed them that the company could announce an agreement on Monday where it is expected that Dell would be bought out by a group led by its CEO and the private equity firm Silver Lake Partners.
The buyout will be done at a share value of $13 to $14 per share, which is quite close to Wall Street expectations. If we consider the speculations credible then it is expected that Michael Dell will pitch in his own $500 Million to $1 Billion as well as his 15.7% share in the company, which will give him majority stake in the new privately owned company. Silver Lake and Microsoft would become minority investors, as Microsoft has also pledged $1 Billion to $ 3 Billion. But it has been reported that for this amount Microsoft wants a say in what Dell does with Windows 8.
Going private will help Dell focus exclusively on its business and strive towards new endeavors, rather than focus on making its shareholders happy.