Dell, one of the biggest PC manufacturers is on the verge of a buyout as sources close to the deal have confirmed that Silver Lake Management LLC is close to taking over the technology giant with a leveraged buyout.
As revealed by a Bloomberg report those close to the talks have also revealed that Microsoft is backing the deal and providing around $ 2 billion in funding for clinching the deal. The price negotiated for Dell shares is expected to be between $ 13.50 and $ 14.25 per share.
The deal is expected to go through by the end of the week with sources cited by Bloomberg claiming that if it doesn’t then price will have become an obstacle leading to the failure of negotiations. This is huge news for the technology world as Dell is one of the biggest PC manufacturers but is facing problems due to slumping demand.
Microsoft’s interest in the deal comes as no surprise as Dell is one of its biggest partners and the software giant needs the support to compete with the likes of Apple, Samsung and Amazon that have taken a lead in the fast growing tablet market.
With PC sales continuing to decline thanks to the rise of the tablet, Microsoft is looking to ensure that its tablets can compete with the software giant requiring the support of its partners. Microsoft’s current tablet offerings have received a lukewarm response from consumers.
It remains to be seen whether this deal goes through as negotiations continue to take place.
Source: Bloomberg
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