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Dell Rumored to be in Buyout Talks

By - Source: Bloomberg | B 13 comments

Dell has seen its share price jump by more than 20 percent on speculation that the company may be in negotiations to be bought out by a private equity firm.

According to an article published by Bloomberg, TPG Capital and Silver Lake are in talks to be acquiring Dell and taking the company private. Prior to the acquisition rumors, Dell traded at a market capitalization of about $18.9 billion, but has since jumped to $22.8 billion.

Bloomberg noted that the deal could be announced as early as this week, but could fall apart due to the massive volume of the deal and the required cash that is necessary to purchase Dell. Rumor has it that the deal would be structured as a management buyout.

Company founder Michael Dell could beone of the main beneficiaries of a buyout, provided that he will cash in on all of his owned stock. Dell currently sits on more than 244 million Dell shares with an aggregate value of about $3.2 billion. However, Dell is likely to retain a major stake in the company even in a buyout scenario, as money may not be a compelling incentive for the executive: Forbes currently ranks him as the 22nd richest American with an estimated wealth of $14.6 billion. Bloomberg estimates Dell's net worth at $13.7 billion.

Dell founded the company at age 19 in 1984.

 

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  • 7 Hide
    SteelCity1981 , January 15, 2013 6:55 PM
    whatever happened to that "dude your getting a dell" guy i know he got in trouble for drugs a while back but thats the last i heard about him.
  • 0 Hide
    JAYDEEJOHN , January 15, 2013 6:56 PM
    Wow
  • 1 Hide
    hedwar2011 , January 15, 2013 7:06 PM
    There was talk of this back in 2007 when a massive layoff happened. I'll believe it when it actually occurs.
  • 7 Hide
    spartanmk2 , January 15, 2013 7:07 PM
    SteelCity1981whatever happened to that "dude your getting a dell" guy i know he got in trouble for drugs a while back but thats the last i heard about him.


    Sham-Wow guy stole the spotlight :D 
  • 4 Hide
    noob2222 , January 15, 2013 7:33 PM
    Quote:
    Dell founded the company at age 19 in 1984.


    If only you could go back in time... who would have thought a 19yo back then would end up with this.
  • 0 Hide
    gidgiddonihah , January 15, 2013 8:15 PM
    As long as my warranty isn't affected I am fine with whatever they do. Give me till April and the company can crash and die. :) 
  • 2 Hide
    waikano , January 15, 2013 8:56 PM
    noob2222If only you could go back in time... who would have thought a 19yo back then would end up with this.


    He wasn't the first...Bill Gates/Steve Jobs. I'm sure there have been others before, but those two were also tech related.
  • 2 Hide
    zander1983 , January 16, 2013 3:01 AM
    gidgiddonihahAs long as my warranty isn't affected I am fine with whatever they do. Give me till April and the company can crash and die.


    Go back in time? Buy Apple shares (shhh I know) and sell them when they hit $700 a share = more than enough money to keep me busy for the rest of my life...
  • 0 Hide
    cogito1965 , January 16, 2013 11:00 AM
    Hell, if I could go back in time, I would have invested in Walmart!!! 1970 to be exact. Walmart opened at $16.50 a share. In '71 the stock split and was going for $47 a share, then again in '72 at $47.50 share! A $1,650 investment would be worth $19,000 in two years! The stock had split SEVEN times by 1985 making your investement worth $636,800 not including dividends!!!
  • 0 Hide
    master9716 , January 16, 2013 12:32 PM
    The only thing Dell is , Is good Marketing . The quality of components they put in computer is cheapest posible to make the most money , At least prices arent ridiculous like cisco prices
  • 1 Hide
    gurboura , January 16, 2013 8:29 PM
    waikanoHe wasn't the first...Bill Gates/Steve Jobs. I'm sure there have been others before, but those two were also tech related.

    You list Steve Jobs but not The Woz?
  • 0 Hide
    waikano , January 17, 2013 2:59 AM
    gurbouraYou list Steve Jobs but not The Woz?


    Fair enough. The Woz is amazing. That being said, he is also 5 years older than Jobs...well was...whatever. Anyway, the point was being made about young entrepreneurs yes 26 is still young to most in the business world but more common then say 19-21.
  • 0 Hide
    waikano , January 18, 2013 4:29 PM
    Palmer Luckey...could be the next Young Tech Genius we'll be talking about in 10 years...keep an eye on him and his VR Oculus Rift.