February 7, 2013 in Daily Bulletin
Dell has opted to go private, delisting its shares from the stock exchange with the help of money from Silver Lake Partners, Microsoft, and the founder, Michael Dell. What does all this mean? Chris Umiastowski had some answers:
- Silver Lake Partners have a history of participating in such deals and that’s why they’re involved.
- Microsoft isn’t directly investing any money. Instead it has given the consortium a $2 billion loan. This does not give Microsoft voting power in the company.
- Microsoft might have had some conditions attached to the loan. If it did though those haven’t been announced.
- Dell benefits because it no longer has to worry about day to day fluctuations in the share price and can make long term strategic bets without worrying about investors who want short term payoffs.