Why Are Wall Street’s Billionaire Sharks Circling Dell?
Two of the most prominent figures on Wall Street — Carl Icahn, the famed corporate raider turned “activist investor,” and Stephen Schwarzman, the billionaire behind private equity behemoth Blackstone Group – have expressed interest in buying PC pioneer Dell. This development sets up a challenge to company founder Michael Dell, who has been planning to take the company private in a $24 billion leveraged buyout. But why are all these billionaires fighting over a struggling PC maker that largely missed the mobile revolution and, more generally, has been unable to innovate fast enough to keep pace with the rest of the technology industry? For Wall Street predators like Icahn and Schwarzman, Dell is an attractively vulnerable target, like a wounded dolphin to a Great White shark. Dell is struggling due to a decline in the PC market as users adopt smartphones and tablets. Overall PC shipments fell 3.2% last year, with sales decreasing by 21%, according to data from research ...
Dell reaches $24.4 billion deal to go private
Founder Michael Dell, equity firm Silver Lake Partners, and Microsoft are taking the Texas-based company off the market in an effort to make the company more agile, and hopefully, more profitable.
PC giant Dell in $24.4 billion deal to go private
Computer maker Dell will go private in a $24.4 billion deal that also involves Microsoft and private equity firm Silver Lake. Company founder Michael Dell and Silver Lake are paying $13.65 per share in cash for the world's No. 3 computer maker.
Found more than 1 month ago on channel MSNBC
Report: Dell near buyout deal worth up to $24B
Group including Microsoft, private equity firms said to be ready to acquire struggling PC maker
Found more than 1 month ago on channel CBS
Microsoft and Dell: A Match Made in Heaven or Hell?
Dell, the pioneering computer company that has struggled to match innovative mobile products from Apple, Google, and Samsung, is in talks to go private with help from prominent tech private equity firm Silver Lake Partners and software giant Microsoft, according to multiple reports. The deal, which would be valued at more than $20 billion, would be the largest leveraged buyout since the financial crisis, and would involve Microsoft kicking in as much as $3 billion. Michael Dell, the company’s multi-billionaire founder and CEO, clearly believes going private is in Dell’s interest; he would help finance the deal, along with several banks. For Dell, the pact would strengthen its relationship with a deep-pocketed and powerful ally at a time when the PC market has stumbled, as users gravitate to smartphones and tablets. Overall PC shipments in 2012 declined 3.2% from one year ago, with Dell’s sales decreasing by 21%, according to data from research firm IDC cited by the Wall Street Journal. ...