February 5, 2013

Dell, Microsoft and Silver Lake

Dell, Microsoft and Silver Lake are in the news today as Dell goes private. Next year, they will be in the news again for

Microsoft buys Dell transaction. The hints for such a transaction are already here. And, in about a year that transaction will also get done. The reasons for why Microsoft would buy Dell are at the link.

Bloomberg highlights the deep ties between Silver Lake, Dell and Microsoft that will enable such a transaction. 
Silver Lake has been involved in some of the most successful technology LBOs, including those of Skype Technologies SA and Seagate Technology Plc. That experience, combined with its ties to Michael Dell, gave it a big edge when the 47-year-old billionaire went looking for a partner to take the company private.
The time between Silver Lake taking Skype private and selling it to Microsoft was about eighteen months. 
Skype -- one of the investments in Silver Lake’s third flagship fund -- earned a more than threefold profit for clients when the video-chat company was sold to Microsoft in 2011 for $8.5 billion. That deal strengthened ties between the firm and Microsoft, which is contributing $2 billion in funding for the Dell buyout. Hutchins, the Silver Lake co-founder, is a friend of Microsoft CEO Steve Ballmer, a fellow 1977 Harvard University graduate and co-chairman of the class gift committee.

An interesting tidbit - Silver Lake’s website seems to have been built by TechTricky?

Tags: dell microsoft, dell silver lake, microsoft silver lake, microsoft buys dell, dell microsoft, silver lake techtricky