DELL, the third largest computer manufacturer – worldwide, is going private, in a leveraged buyout of $24.4 billion. Shares would be bought back from the shareholders, and the founder, Michael Dell, is leading a group that is championing the buyout.
Microsoft contributed $2 billion to the amount, and the executive management of the organization, believes that going private will benefit the near term strategies of DELL, as it seeks to grow sales of its systems, and edge competitors.
Michael Dell, said in a statement on the deal that, “I believe this transaction will open an exciting new chapter for DELL, our customers and team members. We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise.”
The move is a rare one, as many organization, look forward to going private after growth after months of operations. DELL has been struggling as the PC market continues to cower to smartphone and tablet sales. Apple and Samsung are growing strongly in those, and organizations like DELL and HP are looking to meet up. HP announced that it will start selling Chromebook laptops, a move that introduces its multi-OS offering, walking away from its traditional Window-only sales.
Dell is going back private, there is so much expected of the organization — now, that it won’t be under the eye of investors and shareholders, who may have been responsible for lackluster performance in research, development and innovation.
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This article was first published on 5th February 2013 and updated on February 12th, 2013 at 10:45 am
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