The rumors were spot on. Earlier today, we reported that Microsoft might be meeting with Dell to discuss a potential investment of between $1 billion to $3 billion in a bid to privatize the struggling company. And hours after the report, Dell is announcing that it has signed a definitive merger agreement that will give the company back to Micheal Dell’s hands, in partnership with global technology investment firm Silver Lake. Under the terms of the agreement, Dell stockholders will receive $13.65 in cash for each share of Dell common stock they hold – a transaction valued at approximately $24.4 billion.

Micheal Dell, who owns around 14 percent of the common shares, will continue to serve as the company’s Chairman and Chief Executive Officer. Dell also revealed that the transaction was financed by way of investment funds affiliated with Silver Lake, cash invested by MSD Capital, and a $2 billion loan from Microsoft. Yes, the previous report that Microsoft is looking to invest in Dell is true, except for the amount, which is a billion less than what was originally predicted. “Microsoft is committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future,” Microsoft said.

Filed in General. Read more about Dell and Microsoft.

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