Dell considering going private again, says Bloomberg

January 14th, 2013 § 0 comments § permalink

Dell

PC giant, Dell, is considering going private again, according to Bloomberg (via The Verge). The company, which has lost over 1/3 of it’s value in the past year, is already seeking banks to help it make the move back to a private company. In the most recent earnings call, Dell’s profits were down 34% year-over-year, while their revenue went down 7% year-over-year. The company currently has $5.15 billion (£3.2 billion) in the bank, a long way off Google’s $50 billion (£31 billion) and Apple’s $110 billion (£68.4 billion).

Bloomberg‘s sources — which asked to remain anonymous — claimed that Dell is currently talking to two banks, but the deal is volatile; if the right financing isn’t secured, or the right exit strategy put into place, the deal could fall through.

CEO Michael Dell owns a 15.7% stake in the company, which is making a large contribution to the ease of the deal.

Michael Dell famously quipped that he would “shut Apple down and give the money back to shareholders”, a phrase that might come back to haunt him considering Apple’s rude health.

 

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