In a move that some will see as a delicious bit of irony, PC maker Dell is planning on buying back all of its stock from shareholders and going private. The deal will cost some US$24.4 billion and includes a $2 billion loan from Microsoft along with plenty of Apple fans throwing Michael Dell's words back in his face.
Dell buying back its stock and going private
Those words came in the late 1990s when the word "beleaguered" was often said in the same breath as "Apple" when Mr. Dell publicly said he'd shut Apple down and give the money back to the shareholders. While Dell isn't shutting down, the company living up to the rest of his comment.
The company confirmed on Tuesday that Mr. Dell and Silver Lake Partners would be buying back all of the Dell's stock with the intent of taking the company private.
Word surfaced in January that Microsoft was looking into investing money in helping Dell buy back its stock, and it turns out those reports were accurate. At the time, rumors said Microsoft would be giving Dell between $1 billion and $3 billion, which is exactly what's happening.
Microsoft confirmed its $2 billion loan was real, adding "We're in an industry that is constantly evolving. As always, we will continue to look for opportunities to support partners who are committed to innovating and driving business for their devices and services built on the Microsoft platform."
The deal still needs the approval of stockholders and will go through the standard regulatory approval process. Mr. Dell is expecting the stock buyback to be completed by the end of the company's second fiscal quarter for 2014.