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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

February 5, 2013 at 7:04 AM

Microsoft invests $2 billion in Dell buyout

The buyout of Dell by a private investment group that includes Microsoft has gone through in a $24.4 billion deal announced today.

The agreement “will allow Dell’s management to attempt a company turnaround away from the glare and financial pressures of Wall Street,” according to The Associated Press, which also says:

Dell stockholders will be paid $13.65 per share to leave the company on its own. That’s better than $11 level the stock was hovering at before word of the buyout talks trickled out last month, but a steep markdown from the shares’ price of $26 less than five years ago.

Once the sale to a group of investors that includes investment firm Silver Lake is finalized, Dell’s stock will stop trading on the Nasdaq nearly 25 years after the Round Rock, Texas, company raised $30 million in an initial public offering of stock.

Microsoft confirmed that it’s provided a $2 billion loan to the group, with a statement saying:

Microsoft is committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future.

We’re in an industry that is constantly evolving. As always, we will continue to look for opportunities to support partners who are committed to innovating and driving business for their devices and services built on the Microsoft platform.

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