Dell is going private. CEO Michael Dell has teamed up with private equity firm Silver Lake Partners to acquire the company in a $24.4 billion deal, with Microsoft adding a $2 billion loan.
It's thought Dell is hoping it can turn around its recent poor fortunes without the pressure of shareholders. In the last year, the company has lost about a third of its value.
Michael Dell will carry on as CEO. He'll also keep a significant equity investment in the company by contributing his shares, as well as making a "substantial" cash investment.
"Exciting new chapter"
"I believe this transaction will open an exciting new chapter for Dell, our customers and team members," Michael Dell said in a statement. "We can deliver immediate value to stockholders, while we continue the execution of our long-term strategy and focus on delivering best-in-class solutions to our customers as a private enterprise."
So what about Microsoft's part in the deal? The Redmond-based company is hoping to preserve anybody supporting Windows 8, such as Dell. It said in a statement: "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 is the largest of its kind in recent years, and the biggest in Dell's 29-year history.
Recently, Dell has been losing market share in PCs due to the rise of tablets and smartphones. About 70 per cent of its business is still PC-based, according to analysts.