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Microsoft in $2 billion Dell investment

Written by James Delahunty @ 04 Feb 2013 3:52 User comments (6)

Microsoft in $2 billion Dell investment Microsoft to take stake in Dell.
A consortium led by Michael Dell, founder and CEO of Dell Inc, has been negotiating a leveraged buyout of Dell Inc., seeking to take the prolific PC manufacturer into private ownership. Michael Dell is joined by Silver Lake and Microsoft Corp, who are expected to put up $1 billion and $2 billion respectively.

Michael Dell will roll over his 16 percent stake of the company and will invest some of his own money, but the deal clearly is heavily leveraged - the largest leveraged buyout since the financial crisis rocked the business world.

Reuters cites a person familiar with the buyout in reporting that price negotiations have narrowed to between $13.50 and $13.75 per share, suggesting a valuation between $23.5 billion to $23.9 billion.

Facing tough competition from Lenovo and others in the space - along with a shift in the industry away from the traditional Desktop - Dell has ceded market share and is struggling to recover.

Tags: Dell Microsoft
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6 user comments

14.2.2013 16:30

With the way the names are listed in the article and my understanding of the word "respectively" Silver Lake is the 2 billion dollar investor not Micro$oft.

24.2.2013 19:25

Something about this just makes a little voice in my head think of videos i want on youtoob that simply say full of fail...

Quote:

Michael Dell will roll over his 16 percent stake of the company and will invest some of his own money, but the deal clearly is heavily leveraged - the largest leveraged buyout since the financial crisis rocked the business world.

Heavily leveraged... Hmm that means he will be able to gamble with stock holder's money? Dell being a publicly traded company on NASDAQ, just doesn't seem like good business for De11's investors. Unfortunately, when this deal goes bust no government bailout (i hope).

Second thing which feels like this is full of fail M$ is jumping in. Anyone able to cite one joint venture where M$ has joined up with any other company and it has been successful? N0kia? Ah that's a real winner :(

35.2.2013 07:45

Originally posted by o0cynix0o:
With the way the names are listed in the article and my understanding of the word "respectively" Silver Lake is the 2 billion dollar investor not Micro$oft.
Yep you are right, fixed. Thanks!

45.2.2013 07:48

Originally posted by SomeBozo:
Something about this just makes a little voice in my head think of videos i want on youtoob that simply say full of fail...

Quote:

Michael Dell will roll over his 16 percent stake of the company and will invest some of his own money, but the deal clearly is heavily leveraged - the largest leveraged buyout since the financial crisis rocked the business world.

Heavily leveraged... Hmm that means he will be able to gamble with stock holder's money? Dell being a publicly traded company on NASDAQ, just doesn't seem like good business for De11's investors. Unfortunately, when this deal goes bust no government bailout (i hope).

Second thing which feels like this is full of fail M$ is jumping in. Anyone able to cite one joint venture where M$ has joined up with any other company and it has been successful? N0kia? Ah that's a real winner :(
The consortium are looking to take the company under private ownership so it won't be traded on the NASDAQ any more. The reason the deal is heavily leveraged is with Microsoft putting up $2 billion, Silver Lake a billion, Michael Dell rolling over his 16% stake and putting in some of his own cash (his fortunes changed somewhat before he returned to Dell a few years ago), that still will leave a long way to go in a $24 billion deal, so the group has secured financing from several major banks.
This message has been edited since its posting. Latest edit was made on 05 Feb 2013 @ 7:49

55.2.2013 10:34

Originally posted by Dela:
Originally posted by o0cynix0o:
With the way the names are listed in the article and my understanding of the word "respectively" Silver Lake is the 2 billion dollar investor not Micro$oft.
Yep you are right, fixed. Thanks!
No problem.

65.2.2013 12:26

Originally posted by Dela:
Originally posted by SomeBozo:
Something about this just makes a little voice in my head think of videos i want on youtoob that simply say full of fail...

Quote:

Michael Dell will roll over his 16 percent stake of the company and will invest some of his own money, but the deal clearly is heavily leveraged - the largest leveraged buyout since the financial crisis rocked the business world.

Heavily leveraged... Hmm that means he will be able to gamble with stock holder's money? Dell being a publicly traded company on NASDAQ, just doesn't seem like good business for De11's investors. Unfortunately, when this deal goes bust no government bailout (i hope).

Second thing which feels like this is full of fail M$ is jumping in. Anyone able to cite one joint venture where M$ has joined up with any other company and it has been successful? N0kia? Ah that's a real winner :(
The consortium are looking to take the company under private ownership so it won't be traded on the NASDAQ any more. The reason the deal is heavily leveraged is with Microsoft putting up $2 billion, Silver Lake a billion, Michael Dell rolling over his 16% stake and putting in some of his own cash (his fortunes changed somewhat before he returned to Dell a few years ago), that still will leave a long way to go in a $24 billion deal, so the group has secured financing from several major banks.
Thanks for the clarification, sounds like you are more in touch and closer to the facts than I am.

Quote:

But if what you say is correct it scares me more, mainly as you say "so the group has secured financing from several major banks."


Sure sounds like banks are still able to bet in the market, haven't the banked learned after the real estate fiasco? Oh what possibly they did, 1.) they can and will always get bailed out, 2.) There is no risk as they will get bailed out, 3.) Invest in everything, not just real estate so the government would be force to bail them out, don't invent in only one section of the market?




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