Dell reportedly considering going private, talks still early

Dell is in talks to go private, unnamed sources speaking with Bloomberg have told the publication.

At least two firms are talking with Dell about taking the long-time tech company off the public trading floor. Several large banks have also reportedly been contacted about financing an offer, backing that could overcome any financial stumbling blocks in buying out the PC maker.

The discussions, Bloomberg noted, are preliminary and could go nowhere if hurdles like an investment exit strategy aren't hammered out.

Dell lost one third of its value last year and, like much of the PC industry, has struggled to regain the hold it once enjoyed as users switch from traditional PCs to tablets.

Entering a new phase?

Dell isn't completely a lost cause: though it's seen PC demand decline, it has a net cash balance of $5.15 billion (UK£3.2 billion, AU$4.87 billion) and an owner in Michael Dell who controls over 15 percent of the company. Both scenarios lend themselves to more attractive buyout situations.

A buyout can be good for a company even it means investors aren't able to trade its stocks (Dell's stocks are enjoying a nice Monday afternoon bump on the coattails of the buyout news).

Entering into private ownership could amount to more maneuverability for Dell as it tries to stay afloat in a terrain full of pit falls for PC makers.

TechRadar asked Dell for comment on the report and will update this story if and when more information becomes available.

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