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Dell in talks to take company private, says Bloomberg

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Dell is currently in talks to take the company off of the publicly traded stock market, according to a report from Bloomberg. The company has apparently already contacted a number of large banks to help finance the move. Shares of Dell are up fifteen percent and rising since the news that the company plans to go private broke.

Once a giant in personal computers, Dell has struggled in recent years, losing over a third of its value just last year. In its most recent financial report, released in November of last year, Dell's revenue was down seven percent year-over-year, while profits were down 34 percent. The company does have about $5.15 billion in cash to help it float through the decline in sales and profits, however.

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.

Dell declined to provide a comment on the report.

Update: The Wall Street Journal has now published a report on the discussions, which it characterizes as "serious." According to the report, should a deal to take Dell public emerge it will likely do so in the next six weeks.

The Verge
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