Dell Reportedly in Talks to Go Private
Once a darling of the tech world, Dell has been hit pretty hard in recent years because of the rise of smartphones and tablets. Just last year alone, the company lost about a third of its value. Furthermore, the release of Windows 8 did little to boost sales of Windows 8 devices. Faced with the current circumstances, Dell is rumored to be in talks with two private equity firms to go private.
Bloomberg, citing anonymous sources, says that the company is currently talking to two financial firms to help with the deal, but the plan could fall apart if the right financing isn't secured or an exit strategy isn't agreed upon. Since CEO Michael Dell owns a large percentage of shares (15.7 percent, to be exact), Bloomberg's sources say that is easier for financial firms to work out the deal.
The talks are said to be "serious" and in their advanced stages. Bloomberg even says that if a deal is made, the move to take Dell private could happen in as soon as six weeks. However, should the move not go through, Dell is said to have around US$5 billion in cash reserves to help tide it through this difficult period as the company restructures and reorganizes itself.