Dell (DELL), whose CEO Michael Dell once famously said that Apple should shut down its business and return the cash to shareholders, has done almost that. After a period of intense rumor and speculation, the No.3 PC maker has decided to go private.
A team led by Dell himself, along with Silver Lake Partners, is acquiring the company in a $24.4 billion deal. Under the terms of the transaction, shareholders will be paid $13.65 per share in cash, a premium of 25% to the company's closing price on Jan. 11, when rumors of the deal emerged.
The deal is being financed through a combination of cash and equity from Michael Dell, cash from investment funds affiliated with Silver Lake, cash invested by Michael Dell's investment firm, MSD Capital, and a $2 billion loan from Microsoft (MSFT). Dell will also roll over existing debt, and receive new debt financing from a consortium of banks.
Earnings were also at the forefront this week, with names such as LinkedIn (LNKD), Yelp (YELP) and Zynga (ZNGA) reporting results. LinkedIn saw fourth-quarter revenue jump 81% year-over-year, coming in at $303.6 million. That allowed LinkedIn to earn 35 cents a share. Analysts polled by Thomson Reuters were looking for 19 cents a share on $279.52 million in sales. Revenue growth was aided by Talent Solutions revenue, which totaled $161 million, up 90% year-over-year. Talent Solutions revenue made up 53% of this quarter's sales. Mountain View, Calif.-based LinkedIn also surpassed the 200 million member milestone, ending the year with approximately 202 million members, up 39% year-over-year. LinkedIn provided first-quarter guidance that blew past Wall Street estimates. It expects revenue between $305 million and $310 million. Analysts polled by Thomson Reuters were expecting $301.3 million in revenue. For the full year, LinkedIn expects sales between $1.41 billion and $1.44 billion. Wall Street analysts expect $1.439 billion. Shares of LinkedIn soared this week, tacking on 21.53% to finish at $150.48.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV