/// With Dell Buyout Poised to Be Announced Today, the Bromance Between Microsoft and Silver Lake Gets Serious

February 5, 2013  |  All Things Digital


Of all the complex aspects of the $23 billion leveraged buyout that is set to take PC maker Dell private — which sources said is likely to be announced sometime early today — one of the more interesting parts of the mega-deal is the evolving relationship between software giant Microsoft and private equity powerhouse Silver Lake Partners. As part of the massive and complicated transaction led by Silver Lake and founder Michael Dell, as reported yesterday by The Wall Street Journal and others, Silver Lake is ponying up $1 billion and Dell 16 percent stake in the company worth $3.8 billion, as well as $700 million more from his investment firm. There will also be $15 billion in bank debt too. Microsoft’s contribution will be to invest about $2 billion in a form of debt from its nearly $64 billion cash kitty. That’s in part to protect its important Windows operating system franchise, which has been under siege as the device market has moved swiftly to a mobile-based one at the expense of PCs. It’s a big check to write to do so, but one that it’s been willing to consider when it comes to Silver Lake, which has been on both sides of the table with Microsoft in recent years in big-money transactions. The most prominent was when Silver Lake was the seller and Microsoft the buyer in the $8.5 billion deal for Skype , the global telephony company, in mid-2011

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With Dell Buyout Poised to Be Announced Today, the Bromance Between Microsoft and Silver Lake Gets Serious


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