Now that Michael Dell has clinched a deal to take his company private, he faces the bigger challenge of turning a business falling behind in personal computers into a provider of high-margin cloud-computing tools and services.
Dell Inc. (DELL)’s path from personal- computer leader to buyout candidate mirrors the descent of an industry left behind by a raft of upstarts better equipped to capitalize on shifting consumer and business technology demands.
Michael Dell and Silver Lake Management LLC agreed to restrictions including a higher reverse breakup fee and limits on the ability to match bids for Dell Inc., striving to create a deal that would withstand shareholder scrutiny, said people familiar with the matter.
Microsoft Corp. is using a $2 billion loan to help finance Dell Inc.’s $24.4 billion buyout to bolster one of the largest makers of computers using Windows software and fend off competition from Google Inc. and Apple Inc.
Say this for Hewlett-Packard — the beaten-down computer maker still has chutzpah. A little more than an hour after rival Dell said it would go private in a $24.4 billion leveraged buyout, Hewlett-Packard made a bid to nab customers by saying Dell faces “a very tough road ahead.”