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Five Big Questions For Michael Dell And Silver Lake

Nicholas Carlson

Michael Dell is in talks with private equity firm Silver Lake to take his company, Dell, private.

We spoke with a source familiar with these kinds of deals, and he gave us 5 big question to think about:

  • Who's going to be in charge of Dell now -- Michael or Silver Lake or both. What's the governance and decision making structure after?
  • How much cash is Michael going to put in on top of his equity ownership?  What does that mean for his % ownership after?
  • How is Silver Lake thinking of value here -- cash in the bank, value of PC business, value of server business, value of other businesses?
  • What role will Microsoft play?  What will this mean for other PC vendors?  For Intel?  For others?
  • Will new Dell get more aggressive in pricing, in R&D, in tablets/phones, Android, etc.?  Or will it pull back and just get run for cash and get less aggressive?

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