Microsoft helps founder recapture Dell

Once one of the leading PC manufacturers, Dell has struggled in the face of heavy competition from rivals like Lenovo and Hewlett Packard over the last decade. Now, the man who launched the company 29 years ago is seizing control once again with the help of another computing giant that’s been suffering in recent years.

Microsoft, which has seen equally fierce competition from Apple and Google since dominating the PC software market for so long, is lending Michael Dell $2bn as part of a $24.4bn that will see Dell taken private. The deal is also being part-funded by technology investor Silver Lake.

One of the leading lights of the PC-era, Michael Dell has accumulated a net worth of $14.6bn over his career, leading him to be hailed as one of the US’s most successful entrepreneurs. The company’s founder, who is also the company’s chief executive and chairman, already owns 14 percent of the firm and will retain his stake. However, by making the company private he will wield far greater control over the firm he built up as a leading provider of customisable; low to medium cost personal computers.

He is expected to scale back the consumer PC division, in favour of positioning the company as a leading enterprise technology company. There will also likely be a focus on big data and cloud technologies, as well as boosting its ARM-based server ecosystem.

Where Microsoft fits into the equation is unclear. It has been increasingly looking at provider hardware to compete with Apple and Samsung, and its likely seat on the Dell board could see it push for a stronger ties between the two firms.

The fight back from one of technologies most successful businessmen, who is undoubtedly staking his reputation on the deal, is likely to be interesting.