Dell announces that it's going private, assisted by $2 billion loan from Microsoft

The rumors were true. Dell has announced that it will go private, assisted by a $2 billion loan from Microsoft. The full deal between stockholders, Michael Dell and investment firm Silver Lake is being valued at around $24.4 billion. The exchange, which has been in the works since August, will involve a $2 billion loan from Redmond, as well as debt financing from other companies involved. According to the press release (included after the break) Mr. Dell will continue as CEO if the move goes through, adding his shares and additional capital.

Update: Microsoft has issued a statement about the funding deal with Dell:

"Microsoft has provided a $2 billion loan to the group that has proposed to take Dell private. Microsoft is committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future."

Filed under: Desktops, Dell

Comments

Source: Microsoft