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Dell Rumored to be in Buyout Talks

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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  • SteelCity1981
    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.
    Reply
  • JAYDEEJOHN
    Wow
    Reply
  • hedwar2011
    There was talk of this back in 2007 when a massive layoff happened. I'll believe it when it actually occurs.
    Reply
  • spartanmk2
    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
    Reply
  • noob2222
    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.
    Reply
  • gidgiddonihah
    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. :)
    Reply
  • waikano
    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.
    Reply
  • zander1983
    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...
    Reply
  • cogito1965
    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!!!
    Reply
  • master9716
    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
    Reply