Microsoft loans Dell $2 billion to help them go private

Dell has announced a deal that will allow the company to go private and Microsoft will soon become a significant stakeholder in the private company.

It will cost Dell $24 billion to go private and they will pay $13.65 per share which is about a 25% premium on the stock from when word first broke about the possible deal.

By going private, Dell will no longer have to deal with quarterly earnings reports and can now focus on the long-term without having the hear the cries of shareholders who are looking for short-term gains. Under the deal, Michael Dell is contributing his nearly 16% of the company to make the transaction possible.