According to Reuters Dell Inc is about to go private in a buyout led by its founder and Chief Executive Michael Dell and private equity firm Silver Lake Partners, possibly announcing a deal as soon as Monday, according to two people familiar with the matter.
Michael Dell is expected to take majority ownership of the world’s third-largest personal computer maker, which currently has a market value of $23 billion, while Silver Lake and Microsoft Corp would become minority investors, a third person familiar with the matter said.
The price could be in the $15 to $16 a share range, according to another story by The New York Post.
At $15 a share the deal would be worth $25.5 billion to Dell’s equity holders.
When I spoke with Michael Dell in December at Dell World he had a swagger about him. I could see it in his eyes that he’s in it to win it.
What’s does a bored billionaire entrepreneur do? Retool and pivot your billion dollar company. Being a public company can be a drag on a founder especially when you’ve made billions. My feeling is that Michael Dell is tired with the BS of a public company who wouldn’t be. He rode that train already. Now his legacy will be about the modern era Dell 2.0.
Why? Why not? I’m 47 and still doing startups so why shouldn’t Michael Dell relaunch his own company? Dell throws off so much cash (and Wall Street isn’t valuing the company) why not go private. This is a gutsy call. This is about Michael Dell going “all-in.”
What Michael Dell does with this move will define his legacy. Dell 2.0.
Michael Dell talking to SiliconANGLE on theCUBE at DellWorld in December.