Economy

Dell Seals $24.2 Billion Buyout Deal; Founder Among Buyers

Dell is going private. i i
Matt Rourke/AP
Dell is going private.
Matt Rourke/AP

"Slumping personal computer maker Dell is selling itself for $24.4 billion to its founder and a group of investors that includes Microsoft," The Associated Press writes, in "the largest deal of its kind since the Great Recession dried up financing for risky maneuvers like this."

The wire service adds that "the complex agreement announced Tuesday will end Dell Inc.'s nearly 25-year history as a publicly traded company. Shareholders are receiving $13.65 per share for their stock. ... Founder Michael Dell will remain the company's CEO and largest shareholder."

On Morning Edition, NPR's Steve Henn previewed the news and said that analysts aren't sure the deal will make the company more competitive. As Steve reported:

"For Michael Dell to take the company he founded almost 30 years ago private, it will have to borrow in the neighborhood of $15 billion." That debt will be a drain on Dell's cash.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

Support comes from: