Dell goes private

$24.4bn deal.

New Statesman
Photograph: Getty Images

Dell is going private - Michael Dell, the company's founder, is to buy up the rest of Dell, along with Silver Lake and Microsoft.

Here's the Telegraph:

Dell investors will receive $13.65 a share for the world's third largest computer maker which has struggled as consumers increasingly favour tablets over traditional PCs.

The deal will see Mr Dell, who already owned almost 16pc of Dell, regain majority ownership of a company that, together with rival Hewlett-Packard, dominated the PC market for more than a decade.

The deal will be the largest leveraged buyout since the 2008 financial crisis. Dell has struggled in a shrinking market for PCs since the rise of the tablet - and going private will allow it to change its image.

Hewlett-Packard issued a statement saying that, following the buyout, Dell faces a "period of uncertainty":

“The company faces an extended period of uncertainty and transition that will not be good for its customers, and with a significant debt load, Dell’s ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb.

“We believe Dell’s customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity.”