Five Big Questions For Michael Dell And Silver Lake

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?