Dell mega buyout deal nearing closure
Recent reports are suggesting that Dell Computers will be getting bought out by Monday, February 4, 2013. Michael Dell, who is the founder and current CEO of Dell, is expected to have a 16% majority stake in the company once it goes private.
Around mid-January 2013 many rumors surfaced that Dell was looking to go private in order to save the company. Some reports even suggested that Microsoft and Silver Lake Partners investments were looking to purchase the publicly owned computer maker.
Now it seems those rumors are more possible than ever. So the question for Dell is not if they go private, but a matter of when will they go private?
Reuters is reporting that at least four major banks are looking at investing in Dell, which are, Barclays, Bank of America Merrill Lynch, Credit Suisse and RBC Capital. It has also been rumored that as part of the buyout and investment deal, Michael Dell would contribute his stake in Dell of nearly 16% towards gaining the majority ownership, and Microsoft would be willing to invest as much as 3 billion dollars.
Dell, which is mainly known as a PC desktop brand, is nowhere near as popular as it was during the “Dude, you're gettin' a Dell” days. During the months of November and December of 2012 alone, PC sales slipped nearly 6.5 % as tablet sales shot up as much as 75%.
For Dell to be able to compete they will need to shed off their older PC desktop image that so many knew them for. Dell is currently having a hard time competing in a global market with competition from powerful brand names like the South Korea-based Samsung, U.S. based Apple and China-based Huawei.