HP (HPQ) seems to be taking a page from Conan the Barbarian, as the company apparently thinks the best thing in life is to watch the market crush your enemies, see them driven before you, and to hear the lamentation of their shareholders. In the wake of Dell’s $24.4 billion buyout announced Tuesday morning, HP put out a statement taunting its rival by noting that the company “faces an extended period of uncertainty and transition that will not be good for its customers” while also vowing to capitalize on Dell’s misery by swooping in to snag its old customers. More →
Following a number of reports suggesting a deal to take Dell (DELL) private was imminent, the company announced on Tuesday that a deal has been reached. Dell founder Michael Dell is leading the charge with investment firm Silver Lake, and Microsoft (MSFT) will also put $2 billion into the pot in the form of a loan. Current Dell shareholders will receive $13.65 per share, a 25% premium over the company’s closing price on January 11th, and the deal values Dell at approximately $24.4 billion. Dell closed at $13.27 on Monday. The company’s full press release follows below. More →
Michael Dell is putting the final touches on a deal with Microsoft (MSFT) and Silver Lake Partners to take Dell (DELL) private, unnamed sources have told the Wall Street Journal. According to the Journal’s sources, Dell is close to finalizing a $23 billion buyout in which founder Michael Dell will “contribute his nearly 16% stake valued at $3.7 billion and an investment firm he controls another $700 million” while “Microsoft would invest about $2 billion in the form of a subordinated debenture, a less-risky investment than common stock and Silver Lake Partners would invest more than $1 billion.” Several banks are reportedly helping fund the remaining $15 billion for the buyout through the use of debt. A final agreement hasn’t been reached yet, however, and the Journal’s sources cautioned that terms of the agreement could still change.
Dell (DELL) founder and CEO Michael Dell is reportedly near reaching an agreement that would see him take Dell private and leave him as its majority owner. The deal has been in the works for some time and according to multiple unnamed sources speaking with Reuters, it could be finalized over the weekend and announced on Monday. Earlier reports suggested Dell is working with private equity firm Silver Lake to finance the buyout, and as much as $3 billion could come from Microsoft (MSFT), pushing the world’s largest software company further into the Windows hardware business. Reuters was seemingly unable to confirm whether or not the “Dell Dude” will be brought back onboard as part of the deal.
Give Michael Dell credit — he’s apparently willing to put his money where his mouth is. Unnamed sources have told Bloomberg that Dell, the founder of Dell Inc. (DELL), is planning to spend “as much as $1 billion of his personal funds” to regain control of the company and take it private. Bloomberg’s sources indicate that Dell would combine the personal funds with his own $3.6 billion stake in the company to fund just over half of the money needed to buy out Dell. The rest of the buyout would reportedly be “financed by debt and possibly some of the $11 billion of cash Dell reported” in its last earnings report, as well up to $2 billion provided by Silver Lake Management and Microsoft (MSFT). More →
Ben Curtis, an actor and former spokesperson for Dell (DELL) known for his catchphrase “Dude you’re getting a Dell,” believes that he can help the company he used to promote. According to Curtis, the solution is simple: bring back the “Dell Dude.” The actor represented the company from 2000 to 2003 in a series of commercials that were critically acclaimed and helped Dell become the world’s largest PC vendor. After running into some legal problems, however, Curtis was let go. More →
Microsoft (MSFT) may participate in the rumored buyout of Dell. The company is said to be in talks to invest between $1 and $3 billion with Silver Lake Partners and Michael Dell in an effort to take the struggling computer company private, David Faber of CNBC reported. The investment would be a “mezzanine financing most likely taking the form of a preferred of some kind” and not an equity stake in the company. Silver Lake Partners is said to be interested in buying Dell at $13 or $14 a share, valuing the company between $22 billion and $25 billion. Faber’s report was later confirmed by The Wall Street Journal.
Shares of Dell (DELL) jumped more than 12% earlier this week following reports that the company was in talks to go private. The talks are now said to be more advanced than previously thought. Private equity firm Silver Lake Partners is reportedly interested in buying Dell at $13 or $14 a share, The Wall Street Journal reported, valuing the company between $22 billion and $25 billion. More →
Be honest: When was the last time you felt excited about Dell (DELL)? If the answer is “never,” then you might understand why the company is now in talks to go private — basically, it needs a space to boldly reinvent itself that’s far away from the relentless quarterly demands of investors. And what might that bold reinvention entail? According to Christopher Mims at Quartz, it could be a computer the size of a USB stick that’s capable of giving users access to every major operating system. More →
Like a lot of PC manufacturers, Dell (DELL) hasn’t been doing very well lately. And now unnamed sources have told Bloomberg that “several large banks have already been contacted about financing an offer to take Dell private.” Bloomberg’s sources also indicated that Dell is “in talks to go private with at least two private equity firms,” although the sources cautioned that any such deal “could fall apart because the firms may not be able to line up the needed financing or resolve how to exit the investment in the future.” A Dell spokesperson has told CNBC that the company “won’t comment on rumors and speculation,” but didn’t flatly deny the report. Trading of Dell’s shares was briefly halted in the wake of Bloomberg’s report, and surged by 12% immediately after trading resumed.
Windows 8 tablets that were set to be equipped with a new, energy-efficient chip from Intel (INTC) are reportedly being delayed until early 2013, according to Information Week. PC makers are said to be having trouble building drivers for the company’s dual-core Clover Trial Atom Z2760 processor, which was expected to help manufacturers compete with the iPad and several top-notch Android tablets in terms of performance and battery life. More →
The latest version of Windows brought a wave of confusion to consumers looking to purchase a new computer or tablet. Microsoft’s (MSFT) operating system is available in four different versions — Windows 8, Windows 8 Pro, Windows 8 Enterprise and Widows RT. All but the latter are compatible with traditional Intel (INTC) chips and can run older Windows programs. Windows RT is not like the rest, though — the tablet-specific version of Windows is only available on ARM-based devices such as Microsoft’s Surface RT tablet. The operating system comes preloaded with a basic version of Office 2013, however it cannot run traditional desktop applications. The naming scheme has left consumers scratching their heads, and at least one executive warned Microsoft about it earlier this year. More →
The global smartphone industry is expected to grow to reach $150 billion in 2014, and Dell (DELL) wants no part of it. According to Jeff Clarke, head of Dell’s consumer business, the company has no plans to re-enter the smartphone race anytime soon. ”It needs a lot of investments to really be successful,” Clarke told Forbes on Wednesday during the Dell World conference, and the company is apparently unwilling to make those investments. More →