Dell Going Private for $23 Billion / 17 Billion Euro [WSJ]

Michael Dell got Microsoft and Silver Lake Partners to help

By on February 5th, 2013 08:34 GMT
Anyone reading the Wall Street Journal will have probably run across a certain article about what will come of the reported decision of Dell's founder regarding the company.

For those that haven't been keeping an eye on things, rumors have been going around the web about Dell going private.

Michael Dell, the company founder, feels that having to bow down to the will of investors isn't doing Dell any favors.

In order to get the corporation back on a profitable road, Michael Dell has worked with Silver Lake Partners and Microsoft.

In the end, money was what the process boiled down to. If WSJ's sources are correct, the final sum will be of around $23 billion / 17 billion Euro.

That's a bit more than the $22 billion / 16.52 billion Euro speculated last month.

Michael Dell himself already owns a 16% stake of the company shares, valued at $2.7 billion / 2.74 billion Euro.

There is an investment firm he also controls, which will contribute another $700 million / 519 million Euro.

Microsoft will invest $2 billion as a subordinate debenture, a relatively low-risk investment compared to common stock.

As for Silver Lake Partners, over $1 billion will come from there (740 million Euro, give or take).

The remaining $15 billion needed for the buyout and subsequent withdrawal from NASDAQ will come from several banks, through use of debt.

The terms could change as negotiations proceed, and it might be a bit more before a final agreement is reached. Already Microsoft has switched gears from $3 billion / €2.2 billion to one, possibly because it might have lost certain partners otherwise.

Either way, it is obvious enough at this point that Dell really is going private whether the world likes it or not. The process could be finished any day now.
Dell going private for $23 billion / 17 billion Euro
   Dell going private for $23 billion / 17 billion Euro
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