Dell closing in on $23 billion buyout to take company private

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.