Big news today as Michael Dell and a group of companies have bought Dell for $24.4 billion which means the company will be private again. The deal is financed by Michael Dell himself, his investment company, a private equity firm, several bank and a $2 billion loan from Microsoft . Dell’s market shares have been decreasing the last couple of years due to intensified competition in the PC market. The deal is one of the largest financial transactions in the technology industry of the last few years.
By taking the company private Michael Dell will be able to be more flexible in managing the company. Dell is trying to broaden it’s focus from PCs. The company is also trying to market software and services but despite all effort still 70% of its revenues come from the sales of hardware.
With the buyout the company has less pressure from the stoc kmarket which gives more time and freedom to reinvent itself. The involvement of Microsoft is interesting, the company has stated to be interested in developing its own hardware. The company already as its own Surface tablets, keyboards and mice.